South African retail stores giant, Shoprite, has commenced plans to end operations in Nigeria after 15 years.
According to the company’s Operational and Voluntary Trading Update for 52 weeks ended June 28, 2020, Shoprite Holdings is classifying its operations in Nigeria as “discontinued” indicating that it has started a formal process to consider the potential sale of all or a majority stake in Retail Supermarkets Nigeria Limited under which it operates in Nigeria.
Part of the report reads:
Nigeria – discontinued operations
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.
The most recent South African retailer to leave Nigeria is Mr Price. Woolworths left six years ago.