MON, AUG 3 2020-theG&BJournal-Shoprite, Africa’s biggest grocery retailer, has started process to consider the sale of their stake in Nigerian business-Retail Supermarkets Nigeria Limited- a process that will lead to its exit from its biggest market in Africa.
Shoprite said, ”Supermarkets Nigeria Limited may be classified as a discontinued operation when it reports its results for the year.”
Shoprite revealed its exit in a trading statement (for 52 weeks ended 28 June 2020) Monday which did not reflect any of its operation in Nigeria.
The statement on its Nigeria operations read: ‘’Nigeria – discontinued operations– 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 supper giant reported in the Trading Statement that International supermarkets (excluding Nigeria), contributed 11.6% to Group sales but recorded a decline in sales of 1.4% for the year.
It also recorded a second half constant currency sales growth of 6.3% but noted that it was significantly impacted by COVID-19 lockdown regulations across the 14 African countries in which it trades.
‘’Lockdown restrictions pertaining to store closures; social distancing; transport restrictions; the movement of people; trading hours; workforce limitations and trade in alcohol impacted various regions to differing degrees at different times.’’
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