ShopRite, South Africas international retail company, is in discussion with potential investors, likely to be Nigerians, to consider the potential sale of all or a majority stake in Retail Supermarket, its Nigerian subsidiary
In a notice ShopRite released in South Africa as part of its annual report disclosures, the company said it took the decision in "line with our re-evaluation if the group's operating model in Nigeria" and as such Retail Supermarket Nigeria limited may be classified as a discontinued when ShopRite reports the results for the year.” Any further updates the company said will be provided to the market at the appropriate time.
ShopRite, in its financial disclosures on 3 August , was positive of the South African market which grew by 8.7 per cent, while sales outside South Africa excluding Nigeria dropped by 1.4 per cent.
Nigeria, Africa's topmost oil producer with a large population, is an attraction for retail shops but with dearth of infrastructures, fluctuating exchange rates, supply change management bottlenecks, it also has challenging business environment . It is worse off now compounded by the COVID-19. In July 2020, Yomi Osibanjo, Nigeria’s vice-president, stated that the government revenue fell by 40 per cent because of COVID-19.
The South African retail shops also have to contend with local competition, more nimble and with local cost.
