South Africa’s grocery retailer, ShopRite has decided to leave Nigeria, 15 years after it opened shop in the West African country.
The announcement by ShopRite came months after another South African brand, Mr Price, exited the market.
International supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year.
The multi-national retail group, which announced a 6.4 per cent increase (R156.9billion) in total sales of merchandise for the outgoing year despite the challenges posed by the COVID-19 pandemic, announced that it took the decision to discontinue its Nigeria operation “following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria.”
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a statement on Monday.
“Second half constant currency sales growth of 6.3% was significantly impacted by lockdown regulations across the 14 African countries in which we trade. Lockdown restrictions pertaining to store closures; social distancing; transport restrictions; the movement of people; trading hours; workforce limitations and trade in alcohol impacted various regions to differing degrees at different times.” Report said.
The restriction is occasioned by Coronavirus Pandemic.
Shoprite opened its first store in Nigeria in December 2005 and now has a total of 26 stores across eight states in the country including Federal Capital Territory, Abuja. The company also claim to have employed more than 2,000 people in Nigeria, of which 99 per cent of them are Nigerians.
Shoprite also claimed to have built more relationships with over 300 Nigeria suppliers, small businesses and farmers.
In 2019, one person was shot dead as police officers fired live ammunition outside a Shoprite in Lekki, Lagos, State while a police vehicle was also reportedly burnt in the ensuing fracas
The protesters were protesting the xenophobic violence meted on Nigerians in South Africa.