Shoprite to exit Nigerian market 2021

adminUncategorized4 years ago1 Views

South Africa largest Supermarket, Shoprite Holding Limited has revealed that the sale of its Nigerian outlets to shut down is almost at the conclusion stage.

Shoprite had announced its exit out of the Nigerian market in August 2020 in their financial report says it is due to unfavourable market conditions. This came after the company have spent 15 years of operation in Nigeria.

Shoprite would be shutting down its supermarket operation model in Nigeria as the board has initiated a formal price to consider the potential sale of 100% of its equity stake in the Nigeria Supermarket retail.

Shoprite, in its latest 2020 financial report stated that the company was awaiting approval from the Nigerian Federal Competition and Consumer Protection Commission after lodging the transaction with the commission.

According to the company, they have plans for the Shoprite brand to remain in Nigerian as a franchise and as well as administrative support and services to help the new shareholders maintain stability and market value.

It stated, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation. From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.

“Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sales.”

Meanwhile, an image of Shoprite showing placards display in its storefront surfaced on social media in what seems like a staff protest demanding that Shoprite owners should pay them off.

The placard reads, from left placards to the right.

Placard 1

“We are not for sale”

Placard 2

“Shoprite sold staff with products to new investors. We refused to be sold like the product. Pay us off”

Placard 3

“Pay us off”

Placard 4

“5-10 years without promotion and you want to leave us and run away. Ex-Gratia/ Pay us off is our stand”

Placard 5

“Give us our right”