SHOPRITE EXITS NIGERIA AFTER 15 YEARS OF OPERATIONS
South Africa's grocery retailer, Shoprite has revealed plan to leave the Nigerian business market after fifteen years of operation.
The Africa's largest FMCG retailer disclosed this in a statement released on Monday, August 3, 2020.
The company said it has been approached by potential investor willing to take over its Nigerian operations.
It added that it is considering an outright sale of its operation or selling a majority stake in its Nigerian subsidiary.
Read Also: GUNMEN KIDNAP, KILL AIRPORT STAFF
"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 supermarket Nigeria Limited, a subsidiary of ShopRite International limited.
As such, Retail supermarkets Nigeria Limited may be classified as a discontinued Operation," the statement read.
International supermarkets (excluding Nigeria) contributed 11.6% to group sales, and reported 1.4% decline in sales from 2018.
South African operations 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%.
The is coming months after another South African clothing store, Mr price closed its business in Nigeria.
Nigeria is the Africa's biggest market for shoprite operations.