Shoprite Sets To Leave Nigeria By 2021 Ending

SHOPRITE SETS TO LEAVE NIGERIA BY 2021 ENDING
Shoprite Sets To Leave Nigeria By 2021 Ending…
Africa’s largest food retailer and South African owned super market Shoprite Holdings Limited has revealed through their CEO Pieter Engelbrecht that they are on the verge of concluding the sales of their Nigerian outlets on a 100 percent equity sales.

 

 

He made this known via their Financial report for December 2020 operations, where he revealed they are waiting for the approval of the Nigerian Federal Competition and Consumer protection Commision which definitely would arrive before December 2021, to hand over the company to its new owners and share holders who are considering if the brand would remain in Nigeria or not.

 

 

He also revealed that they would be leaving because of the unfavourable market condition they experience in Nigeria. Speaking on the brands decision to close business in Nigeria, the CEO said the following:

 

“We are at the approval stage in terms of the sale of our Nigeria supermarket operation. From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.”

 

 

Shoprite Sets To Leave Nigeria By 2021 Ending…
Shoprite Holdings Limited first made their intentions to exit the country known via their August 2020 Operational and Voluntary Trading Update where the revealed trading in Nigeria is becoming unprofitable due to the low value of the Naira in the international market and other government regulations.

 

 

Shoprite came to Nigeria in December 2005 establishing its first outlet in Lagos and has since opened 24 other outlets around the country. It has been the most patronized super market brand in the country ever since. The only times they experienced challenges doing business in Nigeria was during the September 2019 Xenophobic attacks in South Africa that led to some Nigerians attacking and vandalizing some of their outlets. Their Lekki outlet was also vandalized by hoodlums during the #EndSARS protest of October 2020.

 

Shoprite before the announcement has been on the news several times for actions taken by its junior workers who comlain that the supermarket has been failing to honor their terms of employment which states that the comany would increase their sallaries from time to time depending on how long they spend in the company as workers. An example is the Shoprite workers protest in Lagos, Kwara, and Abia which went viral on the internet.

 

If Shoprite leave Nigeria, it would be the third South African brand to exit the country due to unfavourable market conditions. Woolworths that deals on designers clothings and organic food left in November 2013.
Mr Price that sells mid-range clothings, sports goods and home wares left in June 2020.

 

 

Shoprite Sets To Leave Nigeria By 2021 Ending…
Will you miss Shoorite if they leave Nigeria? Let us know by commenting below. Thanks for reading.

 

READ ALSO: Asset transfer: Shoprite’s move to lift restriction order suffers setback

 

 

 

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