Shop-rite Holdings announced that it would leave the East African nation of Kenya after entering the market 2 years ago and will be closing 2 more stores.
The company announced this on Tuesday, citing the Kenyan business has continued to underperform relative to the return requirements.
This comes as Shoprite also announced it would reduce operations in Nigeria. Nairametrics reported last month that Shoprite International is considering divestment from its Nigerian operation – Retail Supermarkets Nigeria Limited.
Concerning divesting in Nigeria, it had 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.”
The company has also been hit by currency devaluations and supply chain problems in its Sub-saharan African business and is reviewing if it will continue operations also in Angola and Zambia. It announced a 6.4% rise in sales for the accounting year in June.
Shoprite owns 2,300 stores across Africa and opened its first Kenyan outlet at the Nairobi WestGate Mall. The South African company invested in Kenya with the aim of taking a slice of the retail space after the Kenyan retail companies Uchumi Supermarkets and Nakumatt collapsed. (Nairametrics)
