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Business News of Monday, 3 August 2020

Source: www.mynigeria.com

BREAKING: Shoprite to end business in Nigeria

Shoprite (img courtesy Businessday) Shoprite (img courtesy Businessday)

South Africa owned retail outlet, Shoprite has announced that it is getting set to discontinue its business in Nigeria.

The development was disclosed during the operational and voluntary trading update of Shoprite Holdings Limited for the year.

The company stated that the decision was taken “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 company's businesses outside of South Africa indicated a loss after they contributed a paltry 11.6 per cent to the group sales - This excludes Nigeria.

A 1.4 per cent decline in the year under review was blamed on the lockdown period which many African countries declared due to coronavirus pandemic.

“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.”

Shoprite has 26 stores in Nigeria since the first which was opened in 2005.