After the controversy generated by the news that it is leaving Nigeria, Shoprite Holdings said it is simply selling stakes to interested Nigerian investors.
The South African retailer in a memo obtained on Monday by Channels Television, explained that the recent expansion move of the company will create room for more Nigerian investors who share in its vision.
According to the company, the move became important so as to “unlock” the potentials in the West African nation’s retail business, explaining that the best way to do such is by involving local investors.
“It has, however, become apparent that the best manner in which to do this is by engaging Nigerian investors who share in the same vision,” read the memo signed by the General Manager, Carl Erickson.
“In so doing, we would be creating a truly Nigerian business run and owned by Nigerians for the Nigerian market.”
Several potential Nigerian investors have been identified and all options are being explored to make the company’s move a reality, the memo further explained.
“Our experienced management, together with the new investors, will continue to build the business in Nigeria,” it added.
This comes as the company said when it reports its results for the year, Shoprite in Nigeria “may be classified as a discontinued operation.”
The company’s business in Nigeria posted a -6.3% decline in sales for the year ending June 2020, according to the update.
The company entered the Nigerian market in 2005 and its exit continues a trend of South African retail business struggling in Africa’s most populated country.
Shoprite in 2020, said it wants to spend about $205 million on securing new locations in the West African nation and went on to spread its tentacles in many Nigerian cities.
Yesterday, we reported that Persianas Retail could be the preferred winner of the bid to acquire a majority stake in the business.