South African retail giant Shoprite has announced it is leaving Nigeria 15 years after it began operation in Africa’s most populous country.
In a statement on Monday, the Cape Town-based retailer said it has commenced a formal process to consider the potential sale of all or a majority stake in its supermarkets in Nigeria.
The company said the results for the year do not reflect any of their operations in Nigeria as it will be classified as discontinued operation.
“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. As such, Retail Supermarkets Nigeria Limited may be classified a discontinued operation when Shoprite reports its result for the year,” the statement read.
International supermarkets (excluding Nigeria) contributed 11.6 per cent to group sales, and reported 1.4 per cent decline in sales from 2018.
South African operations contributed 78 per cent of overall sales and saw 8.7 per cent rise for the year.
Due to the coronavirus-induced lockdown, customer visits declined 7.4 per cent but the average basket spend increased by 18.4 per cent.
South African retailers have struggled in the Nigerian market and most recently Mr Price exited the market after Woolworths did the same six years ago.