Shoprite’s ‘Nigerexit’: Store woes predate lockdown – Nduka Orjinmo, analyst

Date:

Share post:

Giant South African retailer, Shoprite, is planning to exit the Nigerian market. The retailer which employs around 2000 Nigerians, and operates in eight cities in the country, cited the poor state of the economy and the dwindling value of the Naira as reasons for the planned pull out.

Meanwhile one analyst believes the challenge facing Shoprite in the country predated the lockdown, considering giant retailers such as Mr. Price and Woolworths have had it tough navigating Nigeria’s tough economic terrain, leading to their exit, in recent past.

Shoprite Nigeria speaks out against Xenophobia - Businessday NG
Shoprite employs around 2000 Nigerians and operates in eight states of the federation

Dissecting the realities in Africa’s most populous nation vis-à-vis the giant retailer, Nduka Orjinmo, an analyst on BBC, wrote, “Shoprite’s failure in Nigeria is not surprising, the shiny shopping malls with escalators where its outlets are located are more popular for taking pictures than actual shopping”.

“Tens of millions of Nigerians are poor or unemployed – and minorities who have the spending power to shop at Shoprite have seen their finances take a battering because of the corona virus pandemic. These are hard-times for businesses, but the slow growth at Shoprite Nigeria predates the pandemic”, he added.

Nigeria is said to be the on the brink of its worst recession so far, according to the World Bank. The projected recession is due largely to the collapse in oil prices as mobility grounded to a halt during the COVID-19 induced global lockdown. The fallout of the collapse in oil prices have led to a depleting national reserve, continuous devaluation of the country’s currency, unbridled national borrowing, and declining consumer purchasing power.

Toyin Afilaka
Toyin Afilaka
Toyin Afilaka writes with simplicity and insight. He aims to enrich the Nigerian small business landscape. Through Hustle24 he connects entrepreneurs with information about new policies, enterprise solutions and opportunities that will aid their 'hustle'. He has written extensively for CobraReview, a product review portal, and served as a lead project manager for MarketingMix where he consulted as PR consultant for MTN Project Fame and Business Next Titan etc.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Related articles

Five (5) Steps to Discover, Sift Fake News – Culled from BBC

Written by Amanda Ruggeri Pioneered by digital literacy experts, the "Sift" strategy is a technique for spotting fake news...

Food Production Segment: Pasta Segment Thriving

Do you seek a segment to invest your food production funds? Here is an opportunity lever. Market consumption dynamics...

Business Opportunities: 70% Growth in Current Food Production Level Required in 2050

A report collated by the World Economic Forum (WEF) has emphasised that the current global food production level...

HBR: Four (4) Approach to Diversifying Your Business – Graham Kenny

Summary: Although conventional wisdom suggests that companies should look for growth opportunities close to their core businesses and...