Africa’s biggest retailer store which focuses majorly on groceries, Shoprite, has announced that it would be exiting the West African nation of Nigeria after 15 years of doing business in the country.
The South African retailer has indicated that formalities for closure have started as they are in the process of selling the majority of their stake in their Nigerian business. This was contained in a trading statement for the 52 weeks to end June which the company released on Monday.
There has been a history of South African retailers struggling in the Nigeria market with the likes of Mr Price recently exiting after Woolworths did the same six years ago.
In its 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.
he company’s financials shows that International supermarkets (excluding Nigeria) contributed 11.6% total sales. They also reported 1.4% decline in sales from 2018. South African operations alone 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%.
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