Shoprite Holdings Limited is ready to cut its losses and move out of Nigeria following the covid-19 disruption.
In an “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020)” released on Monday, the South African company said it has been approached by various potential investors.
With over 25 stores manned by more than 2000 workers in eight states of the federation insists in spite of the disruption, the outlook remains bright after 15 years in Nigeria.
“Despite difficult circumstances, in a year incorporating the COVID-19 lockdown and accompanying regulations governing trade, transport and operations, the Group increased total sale of merchandise for the 52 weeks to 28 June 2020 (including the impact of hyperinflation in the prior year) by 6.4% to approximately R156.9 billion. Like-for-like growth for the year was 4.4%,” the publication read in part.
“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.”