INDICATIONS have emerged that Shoprite is planning to exit the Nigeria after 15 years of dominating the large scale retail market.
The retail giant, in a trading update filed at the Johannesburg Stock Exchange (JSE) on Monday, the retail said it was planning to discontinue its operations in Nigeria due to continuous fall in profit.
Shoprite launched in Nigeria nearly 15 years ago, opening its first store in Lagos in December 2005.
It 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,” it stated.
The company said it has been approached by potential investors willing to take over its Nigerian operations.
“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.”
Sales in Nigeria had declined by 6.3 percent in the 2020 fiscal year.
In April the supermarket announced it lost 8.1 per cent of its sales in constant currency terms at the end of the second half 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.
