Shoprite has started a formal process to sell all or a majority of its stake in supermarkets in Nigeria.
Gistongist Onyinye Amos gathered that the retailer is re-thinking its operating model across Africa, amidst the pandemic and logistic concerns.
Chief Executive Officer of Shoprite, Pieter Engelbrecht said, “We remain committed to operating on the continent but are limiting future expansion whilst we review our options with regards to alternate operating models.
“Notwithstanding this, we have taken a number of immediate operational actions, all of which are ongoing and include rent reductions, store closures, productivity improvements and de-dollarising costs.
“We are confident in the absence of further currency devaluations and any unforeseen circumstances that these operational measures will positively impact profitability. Looking ahead, the Group enters the second half with ongoing determination.
Engelbrecht went on to explain how the brand’s investment technology brings greater opportunities, he said, “Our investment in technology affords us greater visibility and results in better decision making across the business. This, together with the launch of our Xtra Savings Rewards Programme, is significant for the Group and bodes well for a future-fit Shoprite.”
Shoprite Holdings has reported a drop in annual earnings as a result of charges recorded during the year.