Shoprite Holdings Limited, a South-African based supermarket chain has commenced formal processes to exit Nigeria.
Reputably one of Africa’s largest network of supermarkets, Shoprite in a trading update on Monday disclosed that it reached the decision after it had been approached by “various potential investors”.
According to the update, the company said its decision is hinged on the economic decline caused by the COVID-19 pandemic which has affected businesses globally.
As a result, the company said: “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”.
The update further stated that when Shoprite reports its results for the year, “Retail Supermarkets Nigeria Limited may be classified as a discontinued operation”.
This development is coming 15 years after Shoprite commenced operations in Nigeria, over which the company established outlets in major cities across the country.
Shoprite’s exit from Nigeria will add to the list of struggling South-African retail businesses with Mr Price announcing moves to shut down its Nigerian business earlier in June.