South Africa's biggest grocery retailer Shoprite Holdings said on Tuesday it is selling its operations in Ghana and Malawi, marking another step towards consolidation of its activities across Africa to focus more on its home market.
The supermarket retailer had expanded extensively in Africa, surpassing rivals such as Pick n Pay and Walmart-owned Massmart to become the continent's leading food retailer in 15 countries.
But forays into markets such as Angola and Nigeria were marred by currency volatility, double-digit inflation, high import duties and dollar-based rentals.
On Tuesday it said Shoprite Malawi signed an agreement on June 6 to dispose of five trading stores, pending certain conditions, including approval from the Competition & Fair Trading Commission and the Reserve Bank of Malawi.
In Ghana, the group received a binding offer in June for seven trading stores and one warehouse. The sale is deemed highly probable, Shoprite said.
The company's shares were down 2.60% on Tuesday morning.
The planned sales follow exits from Nigeria, Kenya, Democratic Republic of Congo, Uganda and Madagascar. Shoprite had also restricted capital allocations to its supermarkets outside South Africa.
The retailer also said it expects headline earnings per share from continuing operations to rise between 9.4% and 19.4% in the 52 weeks ended June 29, up from a restated R11.85 in 2024.
It expects group sales from continuing operations to rise by 8.9% to R252.7bn.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.