“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,” the company said.
The retailer has 25 stores in Nigeria, all of which will be discontinued by a later communicated date.
Shoprite said the results for the year do not reflect any of its operations is Nigeria as it will be classified as discontinued operation.
Group sales rose by 6.4% to about R156.9 billion in the 52 weeks to 28 June, the group said. As a result of the lockdown, customer visits declined by 7.4%, while the average basket spend increased by 18.4%.
However, international supermarkets (excluding Nigeria) contributed 11.6% to group sales, and reported a 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year.
Shoprite is the latest South African retailer to look at leaving Nigeria. In June this year, clothing retailer Mr Price Group also announced plans to shut Nigerian operations, citing weak economic growth and other difficulties.