Local investor acquiring Shoprite Nigeria – Store Manager

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Shoprite

A store manager in one of the shops at the Ikeja Mall has stated that Shoprite Nigeria is not shutting down, rather it is being acquired by a local retail company.

Many Nigerians woke up to the news that Shoprite Nigeria was shutting down following an official communication by the supermarket giant that it is closing its Nigeria branch.

Many took to social media to blame President Muhammadu Buhari’s administration for Shoprite’s failing. The South African supermarket chain is leaving Nigeria after 15 years.

In reaction to a question that Shoprite was shutting down, the store manager, Adeyinka Saka offered clarification on the issue.

“Don’t get it twisted Sir, I am currently working as a store manager in one of the stores at Ikeja City Mall.

“It is being taken over by an indigenous retail company. Nobody is losing his or her job however, there will be a change in management.

Why is Shoprite selling Nigeria stake?

According to Koshiek Karan, a business adviser, Shoprite is leaving Nigeria because of a number of reasons including local culture and consumer preferences.

It would be recalled that Nigerians targeted and attacked South African businesses following xenophobia attacks that in South Africa.

“Shoprite is pulling out of Nigeria and is launching a formal process to sell their stake. South African listed companies have found it challenging to do business in Nigeria. MTN, Tiger Brands and now Shoprite,” Karan said.

“Sharp reminder the sheer arrogance of thinking Africa is “all the same” will burn you. Having advised on cross border African M&A deals, there’s very little emphasis at a senior exec level to really understand local cultures, consumer preferences and ways of doing business.

“It is never as simple as just setting up shop & expecting profits to roll in.”

Some Nigerians however say that supermarket giant’s decision to leave Nigeria is because its management failed to manage its operations in Nigeria properly.

Adewunmi Collins, a journalist and political analyst urged Nigerians not to fret about Shoprite leaving. “The undue tension about Shoprite leaving our country should be doused with the fact that the management of Shoprite has failed.

“It has nothing to to do with the government. Spar, Justrite, Next Cash and Carry are all functioning and performing well. Our jobs secured,” she wrote on Twitter.