South Africa’s grocery retailer Shoprite would exit Africa’s biggest market, Nigeria after 15 years of doing business. This announcement by Shoprite is coming months after another South African brand, Mr Price, exited the market.
International supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year.
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.
In a statement on Monday, Shoprite said: “As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation,”
Meanwhile, the news has not been well-received by some Nigerians. Below are some reactions:
The exit of Shoprite from Nigeria should tell you what you need to know about the "size of the Nigerian consumer market" and the economic incompetence of the present administration.
Anyway, Leventis & Kingsway Stores suffered the same fate under a previous Buhari Administration.
— Onye Nkuzi (@cchukudebelu) August 3, 2020
Mr Price has closed shop and left Nigeria. Apparently Shoprite too is closing its operations and leaving Nigeria after selling its stakes.
Very soon multichoice and MTN might also leave. Buhari is really doing a great job and Nigerians are lucky to have him as President.
— Kelvin Odanz (@MrOdanz) August 3, 2020
So shoprite is leaving Nigeria,thousands of people will be without jobs now,other thousands depending on those people’s incomes,my new neighbor works with shoprite in Ibadan&he has 3kids,his wife is a private school teacher and haven’t worked in a while,so many people like that?♂️
— Oyindamola? (@dammiedammie35) August 3, 2020
Cost of doing business is so high in Nigeria. You provide your own power, your own water etc…
Costs just keeps getting higher and higher.
The unfortunate thing about this Shoprite debacle is the huge loss to staff, contractors and supplier.
An unfortunate domino effect.
— Mo-Mo? (@Morris_Monye) August 3, 2020
If Shoprite wants to stay,they can stay;if they want to go,they can go;it will help local supermarkets to grow.
— Senator Shehu Sani (@ShehuSani) August 3, 2020
If Shoprite wants to stay,they can stay;if they want to go,they can go;it will help local supermarkets to grow.
— Senator Shehu Sani (@ShehuSani) August 3, 2020
https://twitter.com/wildeyeq/status/1290199843940347904?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1290199843940347904%7Ctwgr%5E&ref_url=https%3A%2F%2Fguardian.ng%2Flife%2Fnigerians-react-as-shoprite-sets-to-exit-nigeria-after-15-years%2F
Shoprite's mall-only strategy in Nigeria is faulted, and with growing competition from SuperSaver, Ebeano, D'prince, Hubmart and the rest, their market share will definitely decrease. When last did you buy anything from Shoprite?
— Adewale Adetona (@iSlimfit) August 3, 2020