Shoprite reveals plan to exit Kenyan market

South African Company, Shoprite Holdings Limited, has announced plans to discontinue its operations in Kenya, TopNnaija reports.

This was contained in the company’s end-of-year report titled, ‘Reviewed Results For The 52 Weeks To 28 June 2020’. The company said in the report released on Tuesday that it had already closed one of its three stores in the East African country, noting that it would subsequently dispose of the remaining two.

“Kenya, with three stores at year-end, has continued to underperform relative to our return requirements. Post year-end, one store has been closed.

“Given the ensuing economic impact of COVID-19 and our experience to date, we expect to close or dispose of our remaining two stores in the region in the year ahead,” the company said.

The megastore company had also announced its planned exit from Nigeria last month after about 15 years of operations in the West African country. Shoprite also hinged this decision on the coronavirus pandemic which has disrupted major businesses globally.

“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,” Shoprite had said.

The company, which provides jobs for more than 2,000 Nigerians, has over 25 stores across eight states of the Federation including the Federal Capital Territory, Abuja. The South African business established 40 years ago with over 500 stores across the continent is arguably Africa’s largest grocery retailer.