15 years after it opened its first outlet in Nigeria, Shoprite — Africa’s largest food retailer, has sold its Nigerian operations to a company owned by a group of local investors led by property firm Persianas Investment, Ketron.
The buyer intends to shift the giant from an ownership model to a franchise one.
What’s happening this month, June?
A Nigerian company has just announced the completion of the acquisition of Shoprite’s Nigerian business. @fccpcnigeria approval obtained, according to the statement.
— tolu ogunlesi (@toluogunlesi) June 2, 2021
With the acquisition of the 25 outlets in eight states — approved by Nigeria’s federal competition and consumer protection commission, Shoprite is the latest South African business to pull out from the West African nation due to supply-chain disruptions and repatriation of funds.
Ketron says it has plans to keep open new Shoprite outlets and display more Nigerian-made products.
What our dear friend doesn’t mention is that Shoprite is leaving on account of the failed economic policies of the government in which he serves.
It’s japa szn even for international businesses, but let’s stay clapping. https://t.co/kfo490sNjV
— Editi Effiòng (@EditiEffiong) June 2, 2021
South Africa’s Shoprite has 2.843 supermarkets operating in 15 countries.
This amounts to around 35 million customers on the African continent and in the Indian Ocean islands.
Other foreign companies have encountered similar operational challenges when doing business in Nigeria’s market resulting in their departure from the country’s market — such as Mr Price Group, Woolworths and Truworths International.