First Bank

Monday, August 3, 2020

Why Shoprite Is exiting Nigeria

Africa's largest FMCG retailer, Shoprite, is exiting the Nigerian market as it begins the formal process to consider the potential sale of all or a majority stake in its supermarkets in Nigeria.

According to a trading statement by Shoprite, it's operations in Nigeria saw a 6.7% decline in sales for the twelve months to June 2020, according to the group's trading statement released today.

"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."

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