ShopRite has said it does not plan to leave Nigeria with $30 billion already invested, Vanguard newspaper is reporting.
The Country Director for Chastex Consult, Ini Archibong, said this in a telephone conversation with Vanguard.
Archibong told Vanguard: “Shoprite is not leaving Nigeria.
“We have only just opened to Nigerian investors, which we have also been talking to just before now.
“We are not leaving.
“Who leaves over a $30 billion investment and close shop?
“It doesn’t sound right.
“We only gave this opportunity to Nigeria investors to come in and also help drive our expansion plan in Nigeria.
“So we are not leaving.
“I have tried to say this to many people as I can.
“There should be no panic at all and all of that.
“There is no truth in that report.”
A report from the South African Company, Shoprite Holdings Limited, created the impression that Shoprite in Nigeria, operating under the name: “Retail Supermarkets Nigeria Limited,” was leaving the country.
In what was titled: “Operational and Voluntary Trading Update (52 Weeks Ended 28 June 2020),” released on Monday, the company said: “Despite difficult circumstances, in a year incorporating the COVID-19 lockdown and accompanying regulations governing trade, transport and operations, the Group increased total sale of merchandise for the 52 weeks to 28 June 2020 (including the impact of hyperinflation in the prior year) by 6.4% to approximately R156.9 billion. Like-for-like growth for the year was 4.4%.
“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.”