Nigeria’s largest modern retailer, Shoprite said it will be selling its stakes in the Nigerian operation after the operating fortunes dwindled.
Shoprite had exited Kenya recently for the same reason.
In a statement by the company the group said:
“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. Any further updates will be provided to the market at the appropriate time.”
Apart from the tough economic environment, Shoprite has also been confronted by more competition from foreign and local rivals in the last three years.
Earlier this year, Mr Price Holdings (MRP), said it will be shutting down its operations in Nigeria.
This development is coming three quarters after it shuttered its operations in Australia, two years after it was floated.
Before the winding down of its operations in Nigeria, the casual wear retailer was operating about six outlets located across five states.
Shoprite launched in Nigeria nearly 15 years ago, opening its first store in Lagos in December 2005.
That chain has grown from one to more than 25 retail stores across Nigeria — including some of the biggest retail stores in West Africa.