Shoprite to Sell Majority Stakes in Nigerian Assets

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SWITZERLAND, AUGUST 03 – South Africa’s grocery retailer Shoprite is set to leave Africa’s biggest market, Nigeria, 15 years after it opened shop in the West African 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 South African retailers have struggled in the Nigerian market and came to the unpleasant conclusion months after another South African brand, Mr. Price, exited the market.

In the statement, Shoprite said the results for the year do not reflect any of their operations in Nigeria as it will be classified as discontinued operation.

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, customer visits declined 7.4% but the average basket spend increased by 18.4%.

The company said it has been approached by potential investors willing to take over its Nigerian operations. It said it is 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,” the statement read.

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