Shoprite Africa’s largest food retailer is planning to exit the Nigerian market after p continuous losses from its operations in the West African country.
In a trading update filed at the Johannesburg Stock Exchange (JSE) on Monday morning, the retail giant said it was planning to cease its operations in Nigeria.
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“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,” the update read.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”
Shoprite launched in Nigeria almost 15 years ago, opening its first store in Lagos in December 2005.
That chain has grown from one to more than 25 retail stores across Nigeria — including some of the biggest retail stores in west Africa including Kano state in Northwest Nigeria.
That chain has grown from one to more than 25 retail stores across Nigeria — including some of the International supermarkets (excluding Nigeria) contributed 11.6% to group sales, and reported a 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw an 8.7% rise for the year.
As a result of lockdown, customer visits declined 7.4% but the average basket spends increased by 18.4%. biggest retail stores in west Africa including Kano state in Northwest Nigeria
