AfricaBusiness & FinanceNigeria

ShopRite to auction off Nigerian market after 15years

By Rukayat Akanbi

The South African Megastore Company, Shoprite Holdings Limited has said it would be exiting all it market outlets in Nigeria. The Grocery store which has over 25 outlets across eight states of the Federation including the Federal Capital Territory, Abuja has made this decision after it’s 15years of existence in the country.

ShopRite which provides jobs for more than 2,000 Nigerians, blames the decision on the coronavirus pandemic which has disrupted major businesses globally. In an “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday, the company said it has been approached by “various potential investors”.

The update partly read, “Despite difficult circumstances, in a year incorporating the COVID-19 lockdown and accompanying regulations governing trade, transport and operations, 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%.

“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.”

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