BREAKING: Shoprite EXITS Nigeria After 15 years

By DailyNewsUG Correspondent,

Africa’s biggest grocery retailer, Shoprite, is exiting the continent’s most populated country, Nigeria, after 15 years.

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.

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South African retailers have struggled in the Nigeria market and most recently Mr Price has exited the market after Woolworths did the same six years ago.

In a trading statement for the 52 weeks to end June released on Monday, Shoprite said the results for the year do not reflect any of their operations in Nigeria as it will be classified as discontinued operation.

“Since the opening of our first store in Lagos in December 2005, we have launched an additional 25 stores across eight states in the Federation including the Federal Capital Territory (FCT), Abuja.

“We employ more than 2000 people, of which 99% are Nigerian citizens.

“We’re also proud to support Nigerian business. In our commitment to supporting local enterprise, Shoprite has built relationship with over 300 leading Nigerian suppliers, small businesses and farmers, securing a wide assortment of local brands.

“Shoprite contributes to the well-being of our communities by becoming actively involved in helping those in need. Beyond our everyday low prices, we support projects that are aimed at community upliftment and enrichment.

“Through our Shoprite Community Network we have supported projects in the various Nigerian communities, especially those that focus on hunger relief, women empowerment and skills development. We always strive to make a difference wherever we can.”

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 the statement.

South African retailers have struggled in the Nigeria market and most recently Mr Price has exited the market after Woolworths did the same six years ago.

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.

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

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