Economy

Shoprite Supermarket Group set To Exit Nigeria

Shoprite Stores, one of the largest retail supermarket chain in Africa has commenced the process to exit Nigeria.

This was made known by the giant retail chain store in a trading update published on Monday.

The Shoprite company stated that the decision was made as a result of the re-evaluation of the their operating model in Nigeria and after approaches from various potential investors.

The company said when it reports its results for the year, its business in Nigeria “may be classified as a discontinued operation.”

The Shoprite’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 its exit continues a trend of South African retail business struggling in Africa’s most populated nation.

Earlier,another well-known South African Supermarket chain, Mr Price retailer, announced plans to close its Nigerian business in June.

Also, South African retailer group, Woolworths,had pulled out from Nigerian in 2014, citing high rents and duties, as well as marketing difficulties.

In 2012, Shoprite announced plans to spend up to $205 million on securing new locations in Nigeria.

The supermarket chain went on to spread its tentacles across most of Nigeria’s largest cities.

In 2016, the Nigerian economy suffered a recession, severely affecting consumer spending power and foreign exchange reserves.

In 2019, Shoprite stores were attacked in Lagos as part of reprisal actions for xenophobic-induced attacks against Nigerians in South Africa.

About the author

Joseph Chukwuma Oputa

Joseph Chukwuma Oputa is the Managing Editor of Maslow Businessnews and Physicians News publications published by Maslow Business News Publications, Lagos, Nigeria.

Joseph Oputa is a proud Alumnus of the prestigious Nigerian Institute of Journalism, Lagos and Federal Polytechnic, Bida, Niger State.

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