Africa’s largest shopping mall and biggest grocery retailer store, Shoprite has announced the exits of its operations in Africa’s most populated country Nigeria, after 15 years.
According to a statement released out by the South Africa based company, Shoprite Holdings Limited, reported that they’re closing all operations of the supermarket in Nigeria, due to the poor business run that’s caused by coronavirus pandemic which has disrupted major businesses globally. As a result of lockdown, customer visits declined by 7.4% but the average basket spends increased by 18.4%.
In a statement released out by the management indicated that they has begun a formal process of selling all or a majority stake in its supermarkets in Nigeria, while the trading statement for the 52 weeks to end June released on Monday.
This was contained in the company’s “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday.
The update partly read, “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.”
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. pic.twitter.com/GYTTIrHrmM
— Ayò Bánkólé (@AyoBankole) August 3, 2020
