Shoprite to stop operation in Nigeria

Marco Green
August 3, 2020

In the statement, Shoprite said the results for the year do not reflect any of their operations is Nigeria as it will be classified as discontinued operation.

The company stated this in its "Operational and Voluntary Trading Update" released on Monday.

Shoprite, Africa's largest food retailer, is planning to exit the Nigerian market after posting continuous decline in sales from its operations in the west African country.

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

Outside South South Africa, Shoprite sales grew by only 0.1 percent in the second half of the year under review.

In Nigeria, sales declined by 6.3 percent in the 2020 fiscal year.

The megastore company with presence in virtually all states in Nigeria hinged this decision on the coronavirus pandemic which has disrupted major businesses globally. "Lockdown restrictions pertaining to store closures; social distancing; transport restrictions; the movement of people; trading hours; workforce limitations and trade in alcohol impacted various regions to differing degrees at different times". The company also claim to have employed more than 2,000 people in Nigeria, of which 99 per cent of them are Nigerians.

Other reports by Click Lancashire

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