One of the leading shopping malls owned by South African, Shoprite Holdings Limited, has said that it had concluded plans to vacate Nigeria.
Though, in the company unaudited results, the Chief Executive Officer however praised its employees for the Group’s increased profits by 18.3%, saying that the company sales increased by 4.7%.
The Chief Executive Officer, Mr. Porter Engelbrecht stated that the company would shut down it’s operations in the country.
The management affirmed that it would discard its retail outlets, stressing that the capital allocated to the region remained at a minimum.
It said the Management had decided to vacate its operations in Nigeria because of unfavourable market conditions.
The Board has earlier revealed in its August 2020 financial report that it would halt operations gradually in Nigeria.
While in December 2020 Results Commentary, the company confirmed that the terms of sales have been concluded for the disposal of a 100% equity stake in it’s supermarkets in Nigeria Limited Subsidiary.
According to the company’s website, the management expected the transaction to be approved by the end of the 2021 financial year.
Shoprite added that the management was in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets.
The Chief Executive Officer noted that they are at the approval stage in terms of the sale of our Nigeria supermarket operation.
It revealed that its August 2020 financial report proclaimed it would halt operations gradually in Nigeria.
Life continues with dependants on Shoprite outside Nigeria