South Africa’s grocery retailer, ShopRite, has announced that it is leaving Africa’s biggest market, Nigeria, after 15 years of operation in the West African country.
ShopRite revealed this in a statement on Monday in its operational and voluntary trading update for the year ended on June 28, 2020. The decision came months after another South African brand, Mr Price, exited the Nigerian market.
According to the report, international supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported a 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw an 8.7% rise for the year.
The report stated, “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.”