ShopRite leaves Nigerian market after 15 years

By AdvocateNews on 03/08/2020

Share on facebook Yahoo mail icon Gmail icon

Views: 897


South Africa’s chainstore giant, ShopRite is leaving Africa’s biggest market, 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 company said it has been approached by potential investors willing to take over its Nigerian operations. It said it considering an outright sale of its operation or selling a majority stake in its Nigerian subsidiary.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a statement on Monday.

In April the supermarket announced it lost 8.1% of its sales in constant currency terms at the end of the second half (H2) of 2019 due to the September xenophobic attacks.

In September, Shoprite stores in Nigeria were vandalised and looted following an alleged xenophobic attack in South Africa, targeting Nigerians.

Owing to fears of further attacks several Shoprite stores across Lagos were sealed and guarded by police.

In the report released in April, the parent company stated that the impact of the store closures and drop in customer count resulted in a difficult half for the company.

ShopRite said the subsequent reduction in customer count during and after the crisis implies that some customers of the supermarkets in Nigeria boycotted the brand.

The difficult half development is not limited to Nigeria alone, as activities in some African nations also created holes in the revenue of Shoprite Holdings, especially the supermarkets out of the shores of South Africa (Non-RSA).

Also, the challenging trading conditions, store closures, load shedding, and currency devaluations in these counties resulted in the company’s furniture division, which includes its Non-RSA business. Due to this, Shoprite’s sale of merchandise dropped by 2.7%, while credit participation increased to 13.7% (2018: 12.5%) of the business’ R3.3 billion sales for the interim period.

However, ShopRite is not the only South African country leaving Nigeria. In June, Mr. Price Group also stated plans to close its Nigerian business to focus on its home market business in South Africa.

The popular affordable clothing, sport, and home wear brand has closed four out of its five Nigerian stores and expects to close the last one in the coming months.

Nigeria is the third country where the company has exited, as it had left Australia and Poland in 2019.

The Durban-based company cited challenges like supply-chain disruptions and challenges in getting funds out of the country as reasons it has struggled to operate in Nigeria.

Posted 03/08/2020 7:13:04 PM

 

Share on facebook Yahoo mail icon Gmail icon


 

You may also like...
Relax, COVID-19 will soon pass, it will not...

Biafra supporters protest against Buhari in London

Gunmen abduct four NSCDC officers in Kogi

We won’t take anything below N30,000 as minimum...

Electoral Act: Buhari plots to rig 2019 elections...

Fraudster detains American lady in Lagos hotel, defrauds...

ICPC arraigns Ortom’s aide over N4.7b contract scam...

How journalists can use social media platforms to...

Court orders AGF to recover N40bn pension from...

All past, present corrupt cases will be probed...

CSOs give FG 14-day ultimatum over Sowore

5.5bn foreign loan: APC slams PDP for opposing...

 

Latest News Edo Decides: PDP alleges moves to replace results in Edo North Enugu Royal Father threatens legal action against serving Army Officer, Ex- Perm Sec, others over alleged defamation Umahi weeps at scene of Ebonyi accident, 15 bodies out of 30 victims retrieved Edo election: Over 300 policemen surround Wike’s hotel in Benin, PDP warns IGP Edo: ‘My reelection not worth spilling of blood' – Obaseki How Buhari, officials drew Nigerians’ anger thrice in four days SEED OF DESTINY TODAY -- LIVING IN ETERNITY CONSCIOUSNESS AND APPRECIATION TO GOD Enugu ex-governors Nnamani, Chime in closed door meeting at Agbani Ebeano political family pays solidarity visit to Gov. Ugwuanyi today FG bars Emirates Airlines from operating in Nigeria Cross River landlord sets tenant ablaze over N11,000 rent Man kills his 85-year-old mother, two kids in Anambra

 

Most Read I’ve no Coronavirus, govt wants to kill me – Anambra Index case (39,055 views) Fleeing ex-DG Imo Broadcasting Corporation who stabbed wife to death arrested (26,858 views) FG sends new directive to banks, schools as Buhari extends lockdown by four weeks (20,246 views) Full Text of Governor Ifeanyi Ugwuanyi’s 2016 Budget Speech (18,123 views) HUSHPUPPI: CRIMINALS HAVE NO TRIBE. THEY SHAME ALL OF US... (17,914 views) Ex-Heads of State will protect Jonathan from persecution —Kukah (17,860 views) ASUU strike: Senate intervention ends in deadlock (16,986 views) All you need to know about Peter Obi, PDP VP Candidate (16,841 views) Ugwuanyi commends FG’s siting of ICT University in Enugu (15,773 views) Sickle cell support group seeks government intervention (14,669 views) Ebonyi bans embalming of corpses in homes (14,611 views) DEMOCRACY DAY: President Muhammadu Buhari’s full speech (14,234 views)

 

SECTIONS EDITORIAL (11) NEWS (3,493) POLITICS (463) SOCIETY (122) SPORTS (32) BUSINESS (324) HEALTH (43) EDUCATION (34) ENTERTAINMENT (25) INTERNATIONAL (84) TECHNOLOGY (1) COLUMNISTS (8) LETTERS (1) OPINION (23)

 

 

Julius Agwu - Crazy Interview Demands