Shoprite a South African grocery company is about to dump Nigeria the largest black nation on earth .
NAIJA NEWS NG has learnt that the grocer has initiated formal process to sale off all or a majority stake in its supermarkets in Nigeria . The Grocer revealed this in a trading statement for the 52 weeks that ended today Monday.
Bloomberg reports that Shoprite is considering selling its Nigerian operations. This process was initiated after the grocer said in November that it was reviewing its supermarket operations outside South Africa and would consider exiting certain countries if that would help reverse regional sales declines. The retailer has been battling currency-induced inflation surges in several other African countries.
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 the COVID-19 lockdown, customer visits declined 7.4% but the average basket spend increased by 18.4%.
South African retailers have struggled in the Nigeria market. In June, Mr. Price Group made plans to close its Nigerian business to focus on its home market business in South Africa.
The news of Shoprite possible exit from Nigeria has got Nigerians talking on Twitter . Read below :
“Mr Price has closed shop and left Nigeria. Apparently Shoprite too is closing its operations and leaving Nigeria after selling its stakes.
Very soon multichoice and MTN might also leave. Buhari is really doing a great job and Nigerians are lucky to have him as President.”
“Shoprite is pulling out of Nigeria & is launching a formal process to sell their stake
SA listed companies have found it challenging to do business in Nigeria. MTN, Tiger Brands & now Shoprite
Sharp reminder the sheer arrogance of thinking Africa is “all the same” will burn you”
“The exit of Shoprite from Nigeria should tell you what you need to know about the “size of the Nigerian consumer market” and the economic incompetence of the present administration.
Anyway, Leventis & Kingsway Stores suffered the same fate under a previous Buhari Administration.”
“The Board of Africa’s biggest retailer, Shoprite, has announced plans to discontinue operations in Nigeria after 15 years in. While this may open up opportunities for local investors in that sector, it is a bad pointer to what Nigeria has become as an investment destination.”
Dehkunle Of Africa Droplet Goat
“Now that shoprite is leaving Nigeria which supermarket are we patronizing ?”
banker emeritus @Adheydayor
“So Shoprite is discontinuing operations in Nigeria and selling a majority stake to other investors.
As you can see, they had a bad year 12 months to June 2020. Even SA that has been struggling to grow has a better consumer market. Rest of Africa wasn’t as bad as Naija too.”
“So shoprite is leaving Nigeria,thousands of people will be without jobs now,other thousands depending on those people’s incomes,my new neighbor works with shoprite in Ibadan&he has 3kids,his wife is a private school teacher and haven’t worked in a while,so many people like that”