Economy

Shoprite exits Nigeria due to losses

Due to losses, Shoprite, is planning to exit the Nigerian market launched nearly 15 years ago, opening its first store in Lagos in December 2005.

After posting continuous losses from its operations in the west African country, he retail giant said it was planning to discontinue its operations in Nigeria.

In a trading update filed at the Johannesburg Stock Exchange (JSE) on Monday morning,  it said Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year.

“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,” the update read.

“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”

That chain has grown from one to more than 25 retail stores across Nigeria — including some of the biggest retail stores in west Africa.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: