Shoprite says plans to leave Nigeria

Africa’s biggest grocery retailer, Shoprite, is exiting the continent’s most populated country, Nigeria, after 15 years.

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.

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

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“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 Shoprite International Limited,” a Statement of Shoprite Holding Limited said.

“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,” the statement noted

International supermarkets (excluding Nigeria) contributed 11.6percent to group sales, and reported 1.4percent decline in sales from 2018. South African operations contributed 78percent of overall sales and saw 8.7percent rise for the year.

South African retailers have struggled in the Nigeria market and most recently Mr. Price has exited the market after Woolworths did the same six years ago.