Retail giant Shoprite, is exiting Africa’s most populated country, Nigeria, after 15 years of operation in the country.
According to a report by News 24, 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.
Shoprite’s exit from the country is coming at a time many South African retailers are struggling to get a foothold in the country’s ever competitive retail market.
Recently, Mr Price exited the market after after the company reported they were running at a loss operating in Nigeria.
If you recall, Woolworths did the same six years ago.
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%.