BREAKING NEWS! Shoprite is Leaving Nigeria, After 15 Years of Operation

Published On: August 3, 2020, 11:44 am
Author:
kacy lee
-- Online (f) at 3-08-2020 11:44AM

(29154 | Addicted Hero)


Africa’s biggest grocery retailer, Shoprite, is exiting Nigeria, after 15 years of operation in the country.
The Cape Town-based retailer has started a formal process to consider the potential sale of all or a majority stake in its supermarkets in Nigeria, it said in a trading statement for the 52 weeks to end June released on Monday.

The retailer has been battling currency-induced inflation surges in several other African countries.

As a result of the COVID-19 lockdown, customer visits declined 7.4% but the average basket spend increased by 18.4%.

The announcement by ShopRite came months after another South African brand, Mr Price, exited the market.

International supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year.

The company said it has been approached by potential investors willing to take over its Nigerian operations. It said it considering an outright sale of its operation or selling a majority stake in its Nigerian subsidiary.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a statement on Monday.





In April the supermarket announced it lost 8.1% of its sales in constant currency terms at the end of the second half (H2) of 2019 due to the September xenophobic attacks.

In September, Shoprite stores in Nigeria were vandalised and looted following an alleged xenophobic attack in South Africa, targeting Nigerians.

Owing to fears of further attacks several Shoprite stores across Lagos were sealed and guarded by police.

In the report released in April, the parent company stated that the impact of the store closures and drop in customer count resulted in a difficult half for the company.

ShopRite said the subsequent reduction in customer count during and after the crisis implies that some customers of the supermarkets in Nigeria boycotted the brand.

The difficult half development is not limited to Nigeria alone, as activities in some African nations also created holes in the revenue of Shoprite Holdings, especially the supermarkets out of the shores of South Africa (Non-RSA).

Also, the challenging trading conditions, store closures, load shedding, and currency devaluations in these counties resulted in the company’s furniture division, which includes its Non-RSA business. Due to this, Shoprite’s sale of merchandise dropped by 2.7%, while credit participation increased to 13.7% (2018: 12.5%) of the business’ R3.3 billion sales for the interim period.

However, ShopRite is not the only South African country leaving Nigeria. In June, Mr. Price Group also stated plans to close its Nigerian business to focus on its home market business in South Africa.

The popular affordable clothing, sport, and home wear brand has closed four out of its five Nigerian stores and expects to close the last one in the coming months.

Nigeria is the third country where the company has exited, as it had left Australia and Poland in 2019.

The Durban-based company cited challenges like supply-chain disruptions and challenges in getting funds out of the country as reasons it has struggled to operate in Nigeria.



-- dopygenius (m) at 3-08-2020 11:48AM
(4631 | Gistmaniac)

Dey don Taya for Nigeria
They need to move out...failed country!!
Reply
-- rainbowlove (m) at 3-08-2020 12:55PM
(125 | Upcoming)

Moving from Nigeria to where? are they through milking us?
Reply
-- kaposky (m) at 3-08-2020 01:59PM
(3910 | Gistmaniac)

STUPID AND WICKED SOUTH AFRICA, LET THEM LEAVE
Reply
-- sanababa Online (m) at 3-08-2020 02:58PM
(53 | Newbie)

Who gives a shit about them leaving infact as far as me personally is concerned LET THEM GET THE HELL OUT OF NIGERIA WITH THEIR phyukING DSTV INCLUSIVE WICKED PEOPLE OLUWA DON DO AM NIGERIA AND NIGERIANS GO ALWAYS DEY ONTOP SOUTH AFRICA
Reply