Africa’s biggest Grocery Retailer, Shoprite, has revealed plan to exit Nigeria, Africa’s most populous country after 15 years,
The retailer said it has started a formal process to consider the potential sale of all majority stake in its supermarket in Nigeria in a trading statement for the 52 weeks to end June release on Monday.
South African retailer has struggled in Nigeria. Most recently, Mr Price has exited the market.
In the statement Shoprite says the result for the year might not reflect any of their operations in Nigeria as it would be classified as discontinued operation.
The statement read, “Following approaches from different 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 Supermarket Nigeria limited a subsidiary of Shoprite International Limited.
“ As such, Retail Supermarket Nigeria Limited may be classified as discontinued operation when Shoprite reports its result for the year. Any further update will be provided to the market at the appropriate time.
International supermarket (excluding Nigeria) is said to contribute 11.6 % to group sales. The group reported 1.4 per cent decline in sale from 2018 although South African operations contribute 78 per cent of overall sales and saw 8.7 per cent rise for the year,
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As a result of lockdown, customer visit declined 7.4 per cent but the average basket spent increased by 18.4 per cent.
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