One of Africa’s largest supermarket chains, Shoprite, has begun a formal process to exit Nigeria.
In a trading update published on Monday, the South African-based company said the decision was made after “approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria.”
The company said when it reports its results for the year, its business in Nigeria “may be classified as a discontinued operation.”
The company’s Nigerian business posted a -6.3% decline in sales for the year ending June 2020, according to its Monday update.
The company entered the Nigerian market in 2005 and its exit continues a trend of South African retail business struggling in Africa’s most populated nation.
Mr Price, another South African retailer, announced plans to close its Nigerian business in June.
In 2014, South African retailer, Woolworths, also pulled the plug on its Nigerian operation, citing high rents and duties, as well as marketing difficulties.
More to follow . . .