South Africa’s Retail brand Shoprite has announced its intention to close market operations in Nigeria. The company made this known in its trade update on Monday, which shows a -6.3% decline in its sales. Nevertheless, potential investors have appeared with intentions to take over its Nigerian operations.
Furthermore, sources tell us that the company has suffered trade losses since xenophobic attacks in South Africa led to retaliation attacks and looting of their Nigerian branch in Lagos. Although the issue has been settled, Shoprite perceives a partial boycott from their customer base in Nigeria. The decline in sales proves this notion.
Meanwhile, other South African businesses are also pulling out of Nigeria. Price Group, in June, announced its intention to close its businesses in Nigeria. In 2014, Woolworths also closed down its Nigerian operations. It is seemingly hints that South Africa businesses are gradually pulling out of Nigeria.