South Africa's supermarket retailer, ShopRite, has announced plans to pull out of Africa's biggest economy, Nigeria, 15 years after it launched in the country.
The company’s major reasons for this are:
1. The company is re-evaluating its operating model and has been approached by interested investors willing to take over their Nigerian outlets.
2. Tough business climate in Nigeria are injurious to sales. An example are losses recorded during the latest xenophobic reprisal attacks in Nigeria.
ShopRite's forthcoming exit comes after Mr. Price, another South African retail brand, shut down its Nigerian stores, according to a Bloomberg report.
Mark Stirring, CEO of Mr. Price, announced that the company closed its market in the country after a strategy reevaluation that propelled the decision focus on its home market in South Africa.
Do you think South African businesses are gradually pulling away from Nigeria or are these two closures a coincidence? Would you say these closures are related to the existing xenophobia between South Africans and Nigerians? How would this affect Nigerians and the retail market in Nigeria?
Share your thoughts below!
The company’s major reasons for this are:
1. The company is re-evaluating its operating model and has been approached by interested investors willing to take over their Nigerian outlets.
2. Tough business climate in Nigeria are injurious to sales. An example are losses recorded during the latest xenophobic reprisal attacks in Nigeria.
ShopRite's forthcoming exit comes after Mr. Price, another South African retail brand, shut down its Nigerian stores, according to a Bloomberg report.
Mark Stirring, CEO of Mr. Price, announced that the company closed its market in the country after a strategy reevaluation that propelled the decision focus on its home market in South Africa.
Do you think South African businesses are gradually pulling away from Nigeria or are these two closures a coincidence? Would you say these closures are related to the existing xenophobia between South Africans and Nigerians? How would this affect Nigerians and the retail market in Nigeria?
Share your thoughts below!
