By our reporter| Shoprite, one of Africa’s largest supermarket chains on Monday said it has begun a formal process to exit Nigeria.
The South African-based company in a published update, said the decision was made after “approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria.”
The company said when it reports its results for the year, its business in Nigeria “may be classified as a discontinued operation.”
The company’s Nigerian business posted a -6.3% decline in sales for the year ending June 2020, according to its Monday update.
The company entered the Nigerian market in 2005 and in 2012, announced plans to spend up to $205 million on securing new locations in Nigeria.
However, its exit, announced on Monday continues a trend of South African retail business struggling in Africa’s most populated nation.
Mr Price, another South African retailer, announced plans to close its Nigerian business in June.
In 2014, South African retailer, Woolworths, also pulled the plug on its Nigerian operation, citing high rents and duties, as well as marketing difficulties.
Shoprite’s expected closure in Nigeria comes amid the coronavirus pandemic, which has forced economies across the world into a slump and devasted entire industries.
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