Fakoyejo OlalekanOne year after South African retailer, Shoprite, discontinued its operation in Nigeria, the supermarket giant has shut down its stores in the Democratic Republic of Congo.
Since 2012, when Shoprite entered the Congo market, the company has operated only three stores before its current shutdown. The move was to increase its revenue sources, reducing the firm’s dependence on South African market.
In a statement dated November 21, 2022, Shoprite RDC said it ”wishes to inform the public, its dear customers and all its partners, of the cessation of its activities in the Democratic Republic of Congo.
“This follows the group’s strategy to focus more on its business in South Africa, hence the closure of operations in Nigeria, Kenya, Uganda, and Madagascar.
“The decision to close operations in the Democratic Republic of Congo during this period is regrettable but is part of the group’s long-term strategy.”
What you need to know
Shoprite is rounding off its businesses in other African countries, to focus on operations in South Africa. The move is to cut expenses and reduce exposure to currency volatility and double-digit inflation in its non-South African markets.
The retailer has seen earnings in Nigeria, Kenya, Uganda, and Madagascar impacted by volatility and inflation, as well as high import duties and the rising cost of real estate.
Shoprite had closed its 25 outlets across 11 states and Abuja in Nigeria. Prior to its discontinuation of businesses in these African nations, the retailer had 2,800 stores across 15 countries on the continent.
The supermarket had revealed in 2020 that the business in Nigeria was recording losses, hence, the decision to leave the country. The Nigerian subsidiary, Retail Supermarkets Nigeria Limited told the firm’s assets to Ketron Investment Limited.
Since the change in ownership in Nigeria, there has been no effort to re-brand it, as Ketron Investment still retains the household-name Shoprite trademark for its retail business.
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