Nigeria

After 15 years, shoprite starts the process to leave Nigeria

In December 2005 Shoprite opened its first store in Lagos.

In a trading update that was filed Monday morning at the Johannesburg Stock Exchange, the retail giant said it was preparing to suspend its operations in Nigeria.

International supermarkets (excluding Nigeria) contributed 11.6 percent to group sales and recorded a decrease of 1.4 percent from 2018 in sales.

Operations in South Africa contributed 78 per cent of overall revenue and saw an rise of 8.7 per cent for the year.

The company said potential buyers ready to take over its activities in Nigeria have approached it.

It said it was considering selling its company outright or selling a majority stake in its Nigerian subsidiary.

“In line with our re-evaluation of the Group’s operating model in Nigeria, following approaches from various potential investors, 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.

“So, when Shoprite reports its results for the year, Retail Supermarkets Nigeria Limited can be classified as a discontinued operation. Any more changes will be made available to the market in due time, “read part of the report.