POLITICS

Shoprite Imminent Closure: Nigerians Show Mixed Reaction

Mixed reactions have trailed the news that broke on Monday that South Africa retail giant, Shoprite is making plans to leave Nigeria.

Channels Television reported that the company, which is one of Africa’s largest supermarket chains, had begun a formal process to leave Nigeria 15 years after it began operations in the country.

According to Shoprite’s trading update published earlier, it took the decision following approaches from various potential investors.

It stressed that this was in line with its re-evaluation of the Group’s operating model in Nigeria, saying its business in the country “may be classified as a discontinued operation” when it reports results for the year.
According to the latest update, Shoprite’s Nigerian business posted a -6.3% decline in sales for the year ending June 2020.
Newsannexonline recalls that two months ago, another South African retailer, Mr Price, said it would close its Nigerian business.

However, the news of Shoprite’s exit has sparked various reactions from social media users, including Senator Shehu Sani who represented Kaduna Central senatorial district in the 8th National Assembly.
While Sani thinks their departure will help local supermarkets to grow, a twitter user Olumide Gambee thinks it is a reflection of the country’s business environment.

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