AFTER 15 YEARS: ShopRite Set To Quit Nigerian Market
15 years after it opened shop in the West African country, South Africa’s grocery retailer ShopRite is leaving Africa’s biggest market, Nigeria.
The announcement by ShopRite came months after another South African brand, Mr Price, exited the market.
The company said it has been approached by potential investors willing to take over its Nigerian operations. It said it considering an outright sale of its operation or selling a majority stake in its Nigerian subsidiary.
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“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a statement on Monday.
The Cape Town-based retailer has started a formal process to consider the potential sale of all or a majority stake in its supermarkets in Nigeria, it said in a trading statement for the 52 weeks to end June released on Monday.
In the statement, Shoprite said the results for the year do not reflect any of their operations is Nigeria as it will be classified as discontinued operation. International supermarkets (excluding Nigeria) contributed 11.6% to group sales, and reported 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year. As a result of lockdown, customer visits declined 7.4% but the average basket spend increased by 18.4%.
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