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Retail giant Shoprite Holdings has announced plans to exit the Ghanaian and Malawian markets as part of a broader strategy to refocus on its core operations in South Africa.
In a statement on Tuesday, the South African-based supermarket chain confirmed it had received a binding offer in June to sell its seven stores and one warehouse in Ghana, describing the transaction as “highly probable.” In Malawi, a sale agreement for five outlets was signed on June 6, pending approvals from relevant regulatory authorities.
This move aligns with Shoprite’s recent efforts to streamline operations and scale back its African footprint. The company has already exited Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo, citing operational hurdles.
Shoprite once led Africa’s retail scene, outperforming competitors like Pick n Pay and Walmart’s Massmart. However, rising operational costs, foreign exchange volatility, high import duties, and rental fees pegged to the U.S. dollar have increasingly strained its international ventures.
In Ghana, Shoprite has grappled with growing competition and limited investment in its foreign outlets, prompting the decision to concentrate on its more profitable South African business.
Despite the divestments, Shoprite expects a positive financial outlook, forecasting a 9.4% to 19.4% increase in headline earnings per share for the year ending June 29. Group sales from continuing operations are projected to hit 252.7 billion rand (about \$14 billion), reflecting an 8.9% growth.
Following the announcement, Shoprite’s stock fell by 2.6% on the Johannesburg Stock Exchange.
