SHOPRITE TO LEAVE NIGERIA SOON
BUSINESS - Posted on: 3rd Aug. 2020 at 12:30PM
Africa's biggest retail shop Shoprite has announced plans to withdraw their services from Nigeria.
This was made known today during the company's operational update today Monday, August 3.
Shoprite Holdings Limited, has been in Nigeria since 2005, making it 15 years of operations in the most populous black nation of the world and employed over 2000 workers, 99% of whom are Nigerians.
Despite posting 6.3% increase in total sales in the outgoing year, COVID-19 not withstanding, the retailers said they took the decision to discontinue its Nigeria operation “following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria.”
The report further says, “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,”.
According to the report, sales outside South Africa have declined by 1.4 per cent in the year under review. This it says might be due to the lockdown imposed in several African countries to to stop the spread of Coronavirus pandemic.
It further says that "Second half constant currency sales growth of 6.3% was significantly impacted by lockdown regulations across the 14 African countries in which we trade. Lockdown restrictions pertaining to store closures; social distancing; transport restrictions; the movement of people; trading hours; workforce limitations and trade in alcohol impacted various regions to differing degrees at different times.”
It is not clear yet if the company would give its franchise to Nigerians or if any indigenous company would replace Shoprite.
Africa's biggest retail shop Shoprite has announced plans to withdraw their services from Nigeria.This was made known today during the company's operational update today Monday, August 3.
Shoprite Holdings Limited, has been in Nigeria since 2005, making it 15 years of operations in the most populous black nation of the world and employed over 2000 workers, 99% of whom are Nigerians.
Despite posting 6.3% increase in total sales in the outgoing year, COVID-19 not withstanding, the retailers said they took the decision to discontinue its Nigeria operation “following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria.”
The report further says, “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,”.
According to the report, sales outside South Africa have declined by 1.4 per cent in the year under review. This it says might be due to the lockdown imposed in several African countries to to stop the spread of Coronavirus pandemic.
It further says that "Second half constant currency sales growth of 6.3% was significantly impacted by lockdown regulations across the 14 African countries in which we trade. Lockdown restrictions pertaining to store closures; social distancing; transport restrictions; the movement of people; trading hours; workforce limitations and trade in alcohol impacted various regions to differing degrees at different times.”
It is not clear yet if the company would give its franchise to Nigerians or if any indigenous company would replace Shoprite.
Posted by: Emdee David
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Comments
Keji Adeola david
At least our indigenous stores like spar, justrite, ebeno, next. can take over
