ShopRite Nigeria has debunked news of its exit from Nigeria due to a decline in sales. "Shoprite is not leaving Nigeria," according to the Country Di
ShopRite Nigeria has debunked news of its exit from Nigeria due to a decline in sales.
“Shoprite is not leaving Nigeria,” according to the Country Director for Chastex Consult, Ini Archibong.
“We have only just opened to Nigerian investors which we have also been talking to just before now. We are not leaving, who leaves over a $30billion investment and close shop? It doesn’t sound right. We only gave this opportunity to Nigeria investors to come in and also help drive our expansion plan in Nigeria. So we are not leaving. I have tried to say this to many people as I can. There should be no panic at all and all of that. There is no truth in that report.”
Earlier today, reports of Africa’s retail giant began starting a formal process to consider the potential sale of all or a majority of stake in its supermarkets in Nigeria, began making the rounds. The report said the retailer had struggled in the Nigeria market after some South African owned retailer shops exited the Nigeria market. The report further stated that Shoprite results for the year do not reflect any of their operations in Nigeria as it will be classified as a discontinued operation. The report also said international markets excluding Nigeria contributed 11.6 per cent to the group sales and reported 1.4 per cent decline in sales from 2018.
South African operations contributed 78 per cent of the overall sales and saw 8.7 per cent rise for the years. The report went further to say that as a result of the lockdown, customers’ visits declined 7.4 per cent but the average basket spends increased by 18.4 per cent.
However, the retail giant is only planning to sell it’s stake in Nigeria. In a trading update filed at the Johannesburg Stock Exchange (JSE) on Monday morning, it said, “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,” the update read.
