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South Africa-owned Shoprite Holdings Limited has announced its intentions to vacate Nigeria in the near future.
This was disclosed in Shoprite company’s “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released Monday morning.
To that end, the megastore said it will auction off its outlets in Nigeria, citing coronavirus pandemic as its major reason.
The update reads in part:
“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.” [See attached document below]
The megastore is located in virtually all states in Nigeria and some other countries.
Reacting, Senator Shehu Sani said on his Twitter handle that their departure will help local supermarkets to grow.
He tweeted:
If Shoprite wants to stay,they can stay;if they want to go,they can go;it will help local supermarkets to grow.
— Senator Shehu Sani (@ShehuSani) August 3, 2020
More reactions trail Shoprite’s proposed exit from Nigeria:
Onye Nkuzi @cchukudebelu:
The exit of Shoprite from Nigeria should tell you what you need to know about the “size of the Nigerian consumer market” and the economic incompetence of the present administration.
Anyway, Leventis & Kingsway Stores suffered the same fate under a previous Buhari Administration.
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Koshiek Karan @iamkoshiek:
Shoprite is pulling out of Nigeria & is launching a formal process to sell their stake
SA listed companies have found it challenging to do business in Nigeria. MTN, Tiger Brands & now Shoprite
Sharp reminder the sheer arrogance of thinking Africa is “all the same” will burn you.
Kelvin Odanz @MrOdanz:
Mr Price has closed shop and left Nigeria. Apparently Shoprite too is closing its operations and leaving Nigeria after selling its stakes.
Very soon multichoice and MTN might also leave. Buhari is really doing a great job and Nigerians are lucky to have him as President.
Ayò Bánkólé @AyoBankole:
The Board of Africa’s biggest retailer, Shoprite, has announced plans to discontinue operations in Nigeria after 15 years in. While this may open up opportunities for local investors in that sector, it is a bad pointer to what Nigeria has become as an investment destination.
Chxta @Chxta:
Buhari the grim reaper.
When he started fighting corruption in 1983, Kingsway and Leventis packed up and left.
When he started fighting corruption in 2015, Mr Price, Woolworths, and now Shoprite. Soon enough, Multichoice.
The Middle Class #Nigeria is fantastically corrupt.
READ ALSO: One Shot Dead As Protesters Invade Shoprite [Photos]
