ShopRite clarifies exit talks, set to sell stakes to Nigerian investors

ShopRite clarifies exit talks, set to sell stakes to Nigerian investors

ShopRite Nigeria on Monday, August 3, refuted media reports that it intends to shut down its franchise in Nigeria.

This rebuttal was contained in a statement issued by the Country Director for Chastex Consult, Ini Archibong, in an interview.

Archibong said: “Shoprite is not leaving Nigeria.

“We have only just opened to Nigerian investors which we have also been talking to just before now. We are not leaving; who leaves over a $30billion investment and close shop? It doesn’t sound right.

“We only just given this opportunity to Nigeria investors to come in; and also help drive our expansion plan in Nigeria. So we are not leaving.

“I have tried to say this as too many people as I can. There should be no panic at all and all of that. There is no truth in that report.”

Media reports earlier on Monday revealed that Shoprite announced that it witnessed an increased total sale of merchandise for the 52 weeks to June by 6.4 percent to about US$9.14 billion despite difficult circumstances.

This was coming in the wake of news that it was considering the sale of all of, or a majority stake in, its Nigerian subsidiary.

“Any further updates will be provided to the market at the appropriate time,” it said adding its Nigerian operations could be classed as discontinued when it reports its full-year results.

Shoprite, which operates more than 2,900 outlets in 15 countries across Africa and the Indian Ocean islands, said sales growth of 8.7 percent in its main South African supermarkets division was underpinned by a strong second half.

As a result of a lockdown imposed by the government from late March to curb transmissions of COVID-19; customer visits for the year declined by 7.4 percent; but average basket spending increased by 18.4 percent.

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“Superb execution across the business coupled with considerable efforts from our suppliers resulted in volume growth of 2.3 percent for the year. Market share figures insofar as they are available; reflect consecutive monthly market share gains for the past 15 months,” the retail group said.

 

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