Shoprite Pulls Out Of Nigeria After 15 Years Of Doing Business
AMINA HUSSAINI
Africa’s biggest retailer, Shoprite has announced that it will discontinue its operations in Nigeria after 15 years of doing business..
According to a statement released on Monday, 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.
Shoprite said the results for the year do not reflect any of their operations in Nigeria as it will be classified as discontinued operation.
“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.”
It added that International supermarkets (excluding Nigeria) contributed 11.6 percent to group sales, and reported 1.4 percent decline in sales from 2018. South African operations contributed 78 percent of overall sales and saw 8.7 percent rise for the year.
As a result of Coronavirus pandemic, customer visits declined 7.4 percent but the average basket spend increased by 18.4 percent.
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