Shoprite, South African big retail market, operated by Shoprite Holdings Limited, has announced its decision to stop its operations in Nigeria.
The announcement of the process is contained in a document titled Operational and Voluntary Trading Update (52 weeks ended 28 June 2020).
The company which started its operation in Nigeria in December 2005 blamed its decision on the approaches from various potential investors, and in line with its re-evaluation of the operating model in Nigeria.
The document reads in part: “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 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.”
Shoprite explained in the document, however, that in spite of the difficult circumstances, including the imposition of lockdown as a result of COVID-19, “the Group increased total sale of merchandise for the 52 weeks to 28 June 2020 (including the impact of hyperinflation in the prior year) by 6.4% to approximately R156.9 billion.
“Like-for-like growth for the year was 4.4%.”
Shoprites has 26 stores in eight states of the federation, including the Federal Capital Territory, and has as employees, 2000 people.
