One of the biggest shopping mall in Africa, Shoprite, is set to stop its operation in Nigeria after 15 years, this came as a result of the pandemic affecting the country. The company said Monday on its “Operational and Voluntary Trading Update” that the close down was due to the effect of the coronavirus pandemic.
Shoprite stated this in their trading update that the “Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited,”.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” it said.
Shoprite closing down it operation will result in Nigerians losing their jobs, and this may cause unemployment rate to increase in the country, except potential investors are willing to take over its Nigeria operation.
The company said Monday that they have been approached by potential investors willing to take over its Nigerian operations. So, it is considering an outright sale of its operation in its Nigerian subsidiary.