Shoprite reacts to ‘report of exit’ from Nigeria market, reveals next line of action

Earlier in the news today, it was reported that Africa giant Shopping Mall, ShopRite will leave Nigerian after 15 years of existence, in a new development, Shoprite has dismissed this report

The Country Director for Chastex Consult, Ini Archibong said “Shoprite is not leaving Nigeria.

“We have only just opened to Nigerian investors which we have also been talking to just before now. We are not leaving, who leaves over a $30billion investment and close shop? It doesn’t sound right.

While speaking on the next move, the Director said “We only just given this opportunity to Nigeria investors to come in and also help drive our expansion plan in Nigeria. So we are not leaving.

“I have tried to say this as too many people as I can. There should be no panic at all and all of that. There is no truth in that report.”

There have been reports that the retail outlet has started a formal process to consider the potential sale of all or a majority of stake in its supermarkets in Nigeria.

With claims that it is struggling in the Nigeria market.

Report unveiled that the South African superstores, Shoprite Holdings Limited, will auction its outlets in Nigeria.

The decision, it said, was informed by the COVID-19 pandemic, which it said has affected businesses worldwide.

In its “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday, the megastores with presence in virtually all parts of Nigeria said the retail supermarkets arm will be disposed.

The report further stated that Shoprite results for the year do not reflect any of their operations in Nigeria as it will be classified as a discontinued operation.

The report also said international markets excluding Nigeria contributed 11.6 per cent to the group sales and reported 1.4 per cent decline in sales from 2018.

South African operations contributed 78 per cent of the overall sales and saw 8.7 per cent rise for the years.

The report went further to say that as a result of the lockdown, customers’ visits declined 7.4 per cent but the average basket spends increased by 18.4 per cent.