ManionsoryMX:
Not just Shoprite alone, a lot foreign companies are packing up because they can see another civil war is coming as the country’s economy keeps on collapsing year in year out plus the level of insecurity is alarming.

It's more of a change of ownership, not that the brand is closing its operations in Nigeria.

Bad business environment

Okay

Coldie:
Quality of shoprite is about to nose dive

Did they ever have quality

People don’t ever want to read anymore..

All they do is jump and spew trasshhh..

Swamp investment. Just as Kingsway, Bhojsons and Leventis superstores in the 70's and 80's, the poorly managed, ill-structured economy continues to devour and destroy multinational and transnational investments.

It will surely go down like this: In Nigerian hands, compromises on quality and service will appear, folks will begin to vote with their feet, returning to markets and corner shops and while their products rot on their shelves staff begin to help themselves as salaries and discipline flags and the vicious cycle of internal corruption will finally bury the once famous brand....for another decade or two....until visionary leadership peeks at the Nigerian state and the economy picks up again...attracting a new set of alien venture investors for a new cycle of boom and bust.

Without restructuring, this country CAN NEVER, NEVER, NEVER, EVER WORK.

blackpanda:


Did they ever have quality

The little one they had

The way Awawa boys and one million boys loot their stuff down to shambles at the slightest opportunity is scary..

I will message you bro

sajb:
After they had made trillions of dollars in Nigeria.

Meanwhile, a blogging website for sale. It covers entertainment, celebrity gossips, sports, lifestyle, education and other sections. It runs Google AdSense and is present on Google News. It has good social media platforms (Facebook, Twitter and Instagram). It is a '.com' website with 5 letters. If your are interested, please WhatsApp me on +2348038093033

This present administration keep joking about insecurity, they don't know that it's the basis of all our physical problems. Without security no business will operate well except the kidnapping & terrorising syndicates. Don't get me started on corruption, that's the Ancestor of insecurity. And Nigeria is one of the undisputed top most countries when it comes to corruption

rodeo0070:
Shoprite Group has announced this in its unaudited results for the 26 weeks to 27 December 2020 in which sale of merchandise increased by 4.7% to R83.4 billion while its trading profit increased by 18.3% to R4.7 billion.

The Group confirms that the terms of sale have been concluded for the disposal of a 100% equity stake in its Retail Supermarkets Nigeria Ltd subsidiary. The transaction has been lodged with the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) for approval.

Management expects the transaction to be approved by the end of the 2021 financial year. Management is in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets.

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 nation.

Further analysis by Brand Spur revealed that Shoprite's diluted headline earnings per share (DHEPS) increased by 10.4% to 418.0 cents (Dec 2019: 378.6 cents). Also, the adjusted DHEPS increased by 17.1% to 416.2 cents (Dec 2019: 355.3 cents).

The interim dividend per share declared increased by 22.4% to 191 cents (Dec 2019: 156 cents). Shoprite opened a net total of 60 new stores comprising 25 corporate and 35 franchise stores during the 12 months.

Pieter Engelbrecht, Chief Executive Officer

We are proud to report the Group’s sales increasing by 4.7% for the six months. Within that, our core Supermarkets RSA segment, representing 78.0% of Group sales, increased sales by 5.6%. Adjusting for the closure of our RSA LiquorShop business as a result of nationwide COVID-19 lockdown regulations, our Supermarkets RSA business grew sales by 7.8%.

This is an incredible result given that our customer base spans the entire South African food retail spectrum. Our South African supermarkets’ internal selling price inflation of 4.3% for the six months reflects our unwavering commitment to our customers on price. In true Shoprite style, it was a collective effort across our Shoprite, Usave, Checkers and Checkers Hyper banners and the team is to be commended.

The Supermarkets RSA business has achieved 22 months of uninterrupted market share gains and in the six months to 27 December 2020, the Group created a total of 4 305 new jobs.

In significantly more adverse conditions, our Supermarkets Non-RSA continuing operations achieved constant currency sales growth of 0.9%. The business remained vigilant, combating the challenges faced across Africa, however, currency devaluations again eroded much of our efforts.

We closed the last of our Kenyan stores in February 2021 and are at the approval stage in terms of the sale of our Nigeria supermarket operation. From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.

The successful launch of our Xtra Savings Rewards Programme in our South African based Shoprite supermarket chain following the success in Checkers, gave rise to another strategic milestone for the Group. Our Checkers and Shoprite Xtra Savings Rewards Programme now has the largest membership base in South Africa, with 17 million rewards members.

The opportunities that this programme affords the Group and its valued customers are significant and to say we are optimistic with regard to the future for our business, as a result, would be an understatement.

It is noteworthy that the Group increased trading profit by 18.3%, whilst making significant strides in other areas: borrowings declined by R5.9 billion to R5.5 billion, inventories reduced by R3.0 billion and we lived well within our means in terms of capital expenditure of R1.6 billion.

None of this was achieved in isolation. It was due to the collective effort of the more than 140 000 employees across the Group, represented in areas not limited to our aforementioned supermarket operations, who came together daily to serve our customers and sustain the growth of this great company.

It remained a difficult period in the context of COVID-19 which continued to weigh on our customers, our people and our operations and my acknowledgement and sincere thanks go out to all.

SOURCE: https://brandspurng.com/2021/03/16/shoprite-concludes-sale-of-its-equity-stake-100-in-its-nigeria-subsidiary-awaits-regulatory-approval/

That foreign goods ( especially south africa goods ) was the main attraction.

If the Nigerian buyers can not get foreign goods to buy to suit his taste then this new buyer of the contract will eventually loose the share of the market.

PEOPLE GO TO SUPERMARKET BECAUSE THEY WANT TO TASTE FOREIGN GOODS THAT IS MOSTLY FREE OF ADULTRATION and counterfeiting to some extent.

Nigerians elites is killing shoprite to take over their business and then flood it with local Nigerian goods which are to some extent substandard or does not carry the special designer flair the foreign manufacturer of the products add.

Shoprite do not want Nigeria government to kill the quality of their own goods.

former minister of agriculture once said that Nigeria elites ORDER PIZZA FROM LONDON ( UK ) which is flown directly to Abuja airport Nigeria.

They do not border about the exiting shoprite as they often shop from London UK and other european capital.

it is the poor struggling masses ( average pocket ) Nigerians that are now faced with the problems resulting from shoprite exit.

Others built Buhari scattered what they built

sammyscholar:
It's more of a change of ownership, not that the brand is closing its operations in Nigeria.

is it not Nigerians taking over?
dats bad news for employees

Chai!!!

Everybody is running away from this zoo.

Buhari is finally buried what is left of this shithole.

Nnamdi Kanu said it and was called so many unprintable names.

You all can see what Nigeria finally turned out to be.

More job losses on the way to add to the ever increasing unemployment rate.

God help us!

It is never a good omen when foreign investors start leaving ur country in droves.

The rate at which the government slams exorbitant fines on foreign companies just to raise funds to loot is one. Not to mention money set aside for bribes.
Power, water is a drain on their resources as they are being taxed for services they provide for themselves.

We are used to all this already, but where they’re coming from there’s accountability for & visibility of the things their taxes are doing for them.

Finally the mother of them all, a looming civil war because of loose statements on both sides of a clearly divided country coupled with the lackadaisical attitude of the President to the excesses of his kinsmen and those of the same faith with him.

Except ure a gunrunner, no foreigner with brain in his head expects to do business for long in such a country.

Reference:
Swamp investment. Just as Kingsway, Bhojsons and Leventis superstores in the 70's and 80's the poorly managed, ill-structured economy continues to devour and destroy multinational and transnational investments.

It will surely go down like this: In Nigerian hands, compromises on quality and service will appear, folks will begin to vote with their feet, returning to markets and corner shops and while their products rot on time shelves staff begin to help themselves as salaries and discipline flags and the vicious cycle of internal corruption will finally bury the once famous brand....for another decade or two....until visionary leadership peeks at the Nigerian state and the economy picks up again...attracting a new set of alien venture investors for a new cycle of boom and bust.

Without restructuring, this country CAN NEVER, NEVER, NEVER, EVER WORK.

Na Indians take over leventis store several decades after it was abandoned. Now they bring thier several kind of household imports, sell at a very cheap price( because of that, the market people hate them). Then buy gum arabic with the profits & ship it to India. Those guys are freaking smart lol

MansoryMX:
Not just Shoprite alone, a lot foreign companies are packing up because they can see another civil war is coming as the country’s economy keeps on collapsing year in year out plus the level of insecurity is alarming.

when civil war starts na you go first die. Bad mouth

Good move ...when any small wahala for Lagos, boys go enter Shoprite begin de loot sake of say na South African company. Now with Nigerian ownership ....all man go sit up to protect their investment

rodeo0070:
Shoprite Group has announced this in its unaudited results for the 26 weeks to 27 December 2020 in which sale of merchandise increased by 4.7% to R83.4 billion while its trading profit increased by 18.3% to R4.7 billion.

The Group confirms that the terms of sale have been concluded for the disposal of a 100% equity stake in its Retail Supermarkets Nigeria Ltd subsidiary. The transaction has been lodged with the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) for approval.

Management expects the transaction to be approved by the end of the 2021 financial year. Management is in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets.

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 nation.

Further analysis by Brand Spur revealed that Shoprite's diluted headline earnings per share (DHEPS) increased by 10.4% to 418.0 cents (Dec 2019: 378.6 cents). Also, the adjusted DHEPS increased by 17.1% to 416.2 cents (Dec 2019: 355.3 cents).

The interim dividend per share declared increased by 22.4% to 191 cents (Dec 2019: 156 cents). Shoprite opened a net total of 60 new stores comprising 25 corporate and 35 franchise stores during the 12 months.

Pieter Engelbrecht, Chief Executive Officer

We are proud to report the Group’s sales increasing by 4.7% for the six months. Within that, our core Supermarkets RSA segment, representing 78.0% of Group sales, increased sales by 5.6%. Adjusting for the closure of our RSA LiquorShop business as a result of nationwide COVID-19 lockdown regulations, our Supermarkets RSA business grew sales by 7.8%.

This is an incredible result given that our customer base spans the entire South African food retail spectrum. Our South African supermarkets’ internal selling price inflation of 4.3% for the six months reflects our unwavering commitment to our customers on price. In true Shoprite style, it was a collective effort across our Shoprite, Usave, Checkers and Checkers Hyper banners and the team is to be commended.

The Supermarkets RSA business has achieved 22 months of uninterrupted market share gains and in the six months to 27 December 2020, the Group created a total of 4 305 new jobs.

In significantly more adverse conditions, our Supermarkets Non-RSA continuing operations achieved constant currency sales growth of 0.9%. The business remained vigilant, combating the challenges faced across Africa, however, currency devaluations again eroded much of our efforts.

We closed the last of our Kenyan stores in February 2021 and are at the approval stage in terms of the sale of our Nigeria supermarket operation. From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.

The successful launch of our Xtra Savings Rewards Programme in our South African based Shoprite supermarket chain following the success in Checkers, gave rise to another strategic milestone for the Group. Our Checkers and Shoprite Xtra Savings Rewards Programme now has the largest membership base in South Africa, with 17 million rewards members.

The opportunities that this programme affords the Group and its valued customers are significant and to say we are optimistic with regard to the future for our business, as a result, would be an understatement.

It is noteworthy that the Group increased trading profit by 18.3%, whilst making significant strides in other areas: borrowings declined by R5.9 billion to R5.5 billion, inventories reduced by R3.0 billion and we lived well within our means in terms of capital expenditure of R1.6 billion.

None of this was achieved in isolation. It was due to the collective effort of the more than 140 000 employees across the Group, represented in areas not limited to our aforementioned supermarket operations, who came together daily to serve our customers and sustain the growth of this great company.

It remained a difficult period in the context of COVID-19 which continued to weigh on our customers, our people and our operations and my acknowledgement and sincere thanks go out to all.

SOURCE: https://brandspurng.com/2021/03/16/shoprite-concludes-sale-of-its-equity-stake-100-in-its-nigeria-subsidiary-awaits-regulatory-approval/

Reference:
Swamp investment. Just as Kingsway, Bhojsons and Leventis superstores in the 70's and 80's the poorly managed, ill-structured economy continues to devour and destroy multinational and transnational investments.

It will surely go down like this: In Nigerian hands, compromises on quality and service will appear, folks will begin to vote with their feet, returning to markets and corner shops and while their products rot on time shelves staff begin to help themselves as salaries and discipline flags and the vicious cycle of internal corruption will finally bury the once famous brand....for another decade or two....until visionary leadership peeks at the Nigerian state and the economy picks up again...attracting a new set of alien venture investors for a new cycle of boom and bust.

Without restructuring, this country CAN NEVER, NEVER, NEVER, EVER WORK.

The perils of doing business in Nigeria is that earning in Naira is a recipe for wealth destruction. Many Nigerians dont understand this because they look simply in Naira terms but foreigners who have to convert the Naira back to their home currencies understand. That is why you will find that most of the foreigners/foreign companies who remain in Nigeria earn in forex. Naira is 33% of what it was in 2014 which means your naira eanings must rise 300% over that period just to keep up with your earnings of 7 years ago.....talk less of growth.

There are very few foreign businesses that have profit growth rates in Nigeria to overcome the inevitable destruction in earnings over time through naira devaluation.

Ezmans:
foreign investors leaving nigeria in droves

Foreign investment in Nigeria is no longer making sense. After a running battle with local officials, pilferage, in-house corruption, and insecurity, once they convert the meager remnants of the Naira profit back to their home currency, they are left with almost nothing to show their shareholders.

THEY SOLD SHAREHOLDING.. IT WONT CEASE THE BUSINESS..

adioolayi:
What's the fate of iher workforce

Yankee101:
Others built Buhari scattered what they built

You are correct President Buhari is the king of SCATTER SCATTER !

first Buhari started his madness by clamping down on peaceful endsars demostrators.
He went on to ban the use of Cyptocurrency in Nigeria
He is now chasing away Shoprite from the Nigeria market a business venture he came to meet on ground.
He is using EFCC to hunt Online Workers who are legitimately earning money for themselves to cope with the challenges of unemployment.
He is frustrating farmers with fulani herdsmen who have taken over the forest in the southern part of Nigeria including the middlebelt region
He has destroyed the federal character principles which dictates that all federal positions should be spread across the various regional structures of Nigeria in its places he appoints his own northern kinsmen.
He has frustrated the promise which his party made to get NIGERIA RESTRUCTURED WITHIN THE PRINCIPLES OF TRUE FEDERALISM.
The Nigerian Naira have collapse far below International foreign exchange currencies like the Dollars, pounds etc

MansoryMX:
Not just Shoprite alone, a lot foreign companies are packing up because they can see another civil war is coming as the country’s economy keeps on collapsing year in year out plus the level of insecurity is alarming.

If a member of your family is involved in the purchase of shoprite, would you have written his nonsense? Civil War is coming. If it doesn't come, go and bring it

awoo47:
is it not Nigerians taking over?
dats bad news for employees

Not all Nigerian employers are bad. To surprise you, I work with an indigenous retail store (as big as shoprite) and they treat and pay us better than Shoprite.

MansoryMX:
Not just Shoprite alone, a lot foreign companies are packing up because they can see another civil war is coming as the country’s economy keeps on collapsing year in year out plus the level of insecurity is alarming.

Where did you get your information from.

Other countries are seeing great investments in Nigeria while we busy cursing and mocking ours. SMH

zabuur:


If a member of your family is involved in the purchase of shoprite, would you have written his nonsense? Civil War is coming. If it doesn't come, go and bring it

Leave the guy. Others are seeing opportunities in Nigeria while he is seeing civil war

Some will say this has to do with Buhari.

They will neglect that they are being sued by the late Harry Akande and they don't want to pay

This is purely a business decision from all I see and has nothing to do with the Nigerian business environment. After all, the record posted showed profits and not losses. And they are not only divesting from their Nigerian company they already did so in Kenya. So it happens. Business managers know when to reduce investments in certain arears to reinvest the funds in other areas.

And as for the staff I don't think it will adversely affect them really, since another company will be taking over the management of the franchise. The new managers will still need experienced hands to man their operations to ensure profitability. It happened in Etisalat, now 9mobile with no major job losses. Inevitable tweaking here and there but it will be fine eventually.

isthatso:



The perils of doing business in Nigeria is that earning in Naira is a recipe for wealth destruction. Many Nigerians dont understand this because they look simply in Naira terms but foreigners who have to convert the Naira back to their home currencies understand. That is why you will find that most of the foreigners/foreign companies who remain in Nigeria earn in forex. Naira is 33% of what it was in 2014 which means your naira eanings must rise 300% over that period just to keep up with your earnings of 7 years ago.....talk less of growth.

There are very few foreign businesses that have profit growth rates in Nigeria to overcome the inevitable destruction in earnings over time through naira devaluation.

Naira has moved from #197 in 2014 to #480 now.This increment of Naira is well over 100%.sincerely, i fear for the future of this country.The Nigerian economy is in a very sorry state and the government is either pretending or lying about it.

To be honest what killed Shoprite in Nigeria is the consequences of exchange rate policy in Nigeria. Prior to 2015 we were at less than 200 naira to a dollar. right now the official rate is 410 naira what this means is that the value of profit made in Nigeria though large in Local currency will continue to decline because of the high exchange rate. A typical example is one million naira prior to 2015 was equivalent to 5,000 dollars but now that same one million naira in 2021 is equivalent to 2,400 dollars so that financially is not good for a multi national. That is the dilemma shoprite is facing in other countries in Africa that is what necessitated their exit.

Jorussia:
Naira has moved from #197 in 2014 to #480 now.This increment of Naira is well over 100%.sincerely, i fear for the future of this country.The Nigerian economy is in a very sorry state and the government is either pretending or lying about it.

It is not just this government, all Nigerian govts are guilty. The ultimate verdict on an economy is it's currency. The naira has been falling since it was created

BTW naira was 160 in 2014 not 197

shoprite goes downhill from now ...