One of Africa’s largest food retailers, Shoprite, has announced plans to exit the Nigerian market after posting continuous losses from its operations in the world’s populous Black nation.
Shoprite, in a trading update filed at the Johannesburg Stock Exchange (JSE) on Monday morning, said it was planning to discontinue its operations in Nigeria.
“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.
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“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 update stated.
It would be recalled that Shoprite launched its Nigeria operations some 15 years ago, by opening its first store in Lagos in December 2005.
That chain has grown from one to more than 25 retail stores across Nigeria — including some of the biggest retail stores in West Africa region.