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Finance - News around Africa - Profiles - August 3, 2020

Here is Why Shoprite is Shutting Down in Nigeria

The biggest supermarket chain in Nigeria, Shoprite Holdings Limited, is reportedly exiting the country.

The South Africa-owned megastore plans to sell-off its outlets in Nigeria amid the coronavirus pandemic, reports said.

Business Elites Africa (BEA) gathered that the economic disruption occasioned by the pandemic is the reason the company decided it would auction off its assets in Nigeria.

According to the company’s ‘Operational and Voluntary Trading Update’ released on Monday, August 3, it is considering “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”, the company stated.

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As reported by Nairametrics a few months ago, Shoprite Holdings in Nigeria lost 8.1% of its sales in constant currency terms at the end of the second half (H2) of 2019 due to September’s (of that year) Xenophobic attacks and reprisal violence in Nigeria.

It would be recalled that Mr Price and Truworths, also South African retailers, exited the Nigerian market years back after struggling to sustain profitability.

BEA reached out to Shoprite Nigeria for comments on the reported sale of its assets but we did not get a response as at the time of filing this report.

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