ShopRite quits Nigeria over bad business

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South African Company, Shoprite Holdings Limited, has announced plans to leave the Nigerian market.

Operating under the name: “Retail Supermarkets Nigeria Limited,” the company, which opened its first store in Lagos in December 2005, now has outlets in seven states and the Federal Capital Territory, Abuja.

In what was titled: “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020),” released on Monday, the company said: “Despite difficult circumstances, in a year incorporating the COVID-19 lockdown and accompanying regulations governing trade, transport and operations, the Group increased total sale of merchandise for the 52 weeks to 28 June 2020 (including the impact of hyperinflation in the prior year) by 6.4% to approximately R156.9 billion. Like-for-like growth for the year was 4.4%.

“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 as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”

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