fbpx
Edit Content

Shoprite Set To Exit Nigeria After 15 years

shoprite

South African retail giant, Shoprite International Limited says it will consider an outright sale or potential sale of the majority stake of its Nigerian subsidiary, Retail Supermarket Nigeria Ltd. 

This is according to Shoprite’s operational and trading update filed at the Johannesburg Stock Exchange on Monday morning. The retail giant said it was planning to discontinue its operations in Nigeria after 15 years of full operation.

See Also: 100 Profitable business ideas to start now for aspiring entrepreneurs and investors. 

Start Your Business in 30 Days Even If You Don't Have An Idea
Start Your Business in 30 Days Even If You Don’t Have An Idea

“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,” part of the update read.

According to the company, the decision was due to the effect of the COVID-19 outbreak on the retail industry. 

See Also: Retail business ideas to start now with low investment and make money.

What You Need To Know

Shoprite is a South African company, and they launched their first store in Lagos in December 2005. Its international outlets (excluding Nigeria) contributed 11.6% to group sales and reported a 1.4% decline in sales from its books in 2018.

Furthermore, South African operations contributed 78% of overall sales and saw 8.7% rise for the year.

The retail giant has been struggling with staying afloat in Nigeria recently. Recall, that in H2 2019 Shoprite lost about 8.1% of sales, which was due to the September 2019 xenophobic attacks.

Also, according to reports, another South African retailer, Mr. Price, had announced it would also exit Nigeria and focus on the South African domestic market. This is coming after they closed 4 of the 5 retail outlets in Nigeria.

As entrepreneurs and great readers of Entrepreneurs.ng, do you think this move will help shoot the growth of local supermarkets? 

Let’s create visibility for your brand today and put your business on the world map. Contact us today to make your brand the preferred choice among our audience of entrepreneurs and business leaders.

To keep track of our activities, follow us on Instagram.

Share:

Facebook
Twitter
LinkedIn

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Business Registration

Most Popular

Join Entrepreneurs Family

No spam, only business insights and tips. 

Entrepreneurs Sign Up

Related Posts

How to build lasting relationships with customers

How To Build Lasting Relationships With Customers

Business sustainability is heavily hinged on building longstanding relationships with clients. How do you build lasting relationships with customers? This can be achieved by upselling and cross-selling. Given the competitiveness of business, new customer acquisition can be tough, so repeat business from already paying customers should be the goal. The

How to build a strong personal brand

4 Awesome Ways to Build a Strong Personal Brand

To build a strong personal brand, you have to be intentional. A personal brand is the unique combination of skills, experiences, and personality that you want the world to see. It’s the telling of your story, and how it reflects your conduct, behaviour, spoken and unspoken words, and attitudes. In

How to grow a side hustle

How to Grow Your Side Hustle Into a Successful Business

Many people start side hustles to earn extra income. But what if your side hustle could become your main source of income? Growing a side hustle is a skill. Do you have what it takes to grow a side hustle? If you don’t, we got you. Transforming your side hustle

Best sales books for entrepreneurs

Best Sales Books for Entrepreneurs and Business Owners

One effective way to stay ahead of the competition is by updating your knowledge in sales. There are a lot of sales books tailored to entrepreneurs. In this article, we will look at the best sales books for entrepreneurs. These books provide valuable strategies that can significantly impact business growth.

Scroll to Top

Join Entrepreneurs Family!

Get access to FREE business insights and funding opportunities daily.

Entrepreneurs Sign Up