Shoprite has denied reports of closing down its operations and leaving Nigeria, a few hours after reports circulated online that the company which has operated for 15-years, is leaving Africa’s biggest market.
Shoprite in another report on Monday 3rd August 2020 being circulated online, through its country Director for Chastex Consult, Ini Archibong, shows the earlier report released by the company was misinterpreted as them leaving Nigeria.
Ini Archibong in statement dated on 31st July 2020, that 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 gave 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 to many people as I can. There should be no panic at all and all of that. There is no truth in that report,” the statement said.
Recall we reported that Shoprite Holdings Limited which has stores across the country and in most of the countries in Africa, making them Africa’s largest grocery retailer, said they are selling off the majority of their shares in Africa’s biggest market, Nigeria. The decision they had said was due to the coronavirus pandemic which has disrupted major businesses globally.
According to the report by news24, Shoprite Holdings Limited made the announcement to kick start the formal process of selling off all or a majority stake in its supermarkets in Nigeria, in a trading statement for the 52 weeks to end June released on Monday.
The report said, that Shoprite Holdings Limited has struggled in the Nigeria market and most recently Mr Price has exited the market after Woolworths did the same six years ago.
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 a discontinued operation.
International supermarkets (excluding Nigeria) contributed 11.6% to group sales and reported a 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw an 8.7% rise for the year.
As a result of lockdown, customer visits declined 7.4% but the average basket spends increased by 18.4%. This was the Press Released debunking the rumour that the company is Leaving Nigeria.
