ShopRite, South Africa’s grocery retailer, has began plans to exit its biggest market, Nigeria, after 15 years. The first store was opened in Lagos in December, 2005.
In a trading update filed at the Johannesburg Stock Exchange (JSE), the retail giant said it was planning to discontinue its operations in Nigeria.
In a statement released, the company said “we have been approached by potential investors willing to take over the Nigerian operations. We are also considering an outright sale, while also looking at the option of selling a majority stake in the Nigerian subsidiary”.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” the statement reiterated.
It further stated that “International supermarkets (excluding Nigeria) have contributed 11.6% to group sales and reported 1.4% decline in sales from 2018. While South African operations contributed 78% of overall sales and saw 8.7% rise for the year in view”.
That chain has grown from one to more than 25 retail stores across Nigeria.