There has been a twitter leak revealing that Africa’s biggest grocer, Shoprite  is about to pull out of Nigeria business ecosystem and they are already making plans to sell their stake.

The shocking news was shared by an online twitter user Koshiek Karan who said “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”

 

The International supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported 1.4% decline in sales from 2018.

Being a South African co-operation it has contributed about 78% of overall sales and saw 8.7% rise for the year.

Why Is Shoperite Pulling Out Of Nigeria

The company said it has been approached by potential investors willing to take over its Nigerian operations. It said it considering an outright sale of its operation or selling a majority stake in its Nigerian subsidiary.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,” ShopRite said in a statement on Monday.

It has been also revealed that the South African retailers have struggled in the Nigeria market and most recently Mr Price has exited the market after Woolworths did the same six years ago.

As a result of lockdown, customer visits declined 7.4% but the average basket spend increased by 18.4%.

See Tweep Reactions To The Topic Below