Former Kaduna lawmaker, Senator Shehu Sani, in his reaction the report on exit of retail giant Shoprite from Nigeria, has said it will provide an opportunity for local supermarkets in the country to grow.
In a tweet he shared, Sani stated that the company is free to stay if they intend doing that and if they have decided to leave teh country, then they are also free to go.
He wrote on Twitter:
If Shoprite wants to stay,they can stay;if they want to go,they can go;it will help local supermarkets to grow.
Shoprite’s exit from the country is coming at a time many South African retailers are struggling to get a foothold in the country’s ever competitive retail market.
Recently, Mr Price exited the market after after the company reported they were running at a loss operating in Nigeria.
If you recall, Woolworths did the same six years ago.
In the statement, Shoprite said the results for the year do not reflect any of their operations is Nigeria as it will be classified as discontinued operation.
International supermarkets (excluding Nigeria) contributed 11.6% to group sales, and reported 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year.
As a result of lockdown, customer visits declined 7.4% but the average basket spend increased by 18.4%.