Despite sales rising by 2.5 percent overall, Shoprite Holdings said sales in Nigeria declined to Rand 2.74 billion or $161.4 million in the 52 weeks ended June 2020.
The South African retail giant said this was below the R2.917 billion posted in the same period of 2019.
Accordingly, Shoprite Nigeria reported a loss after tax of R87 million during the period under review. Better than the R345 million loss after tax filed in the corresponding period of 2019.
COVID-19 lockdown plunged customers’ visits by 7.4 percent during, according to the company.
However, the company attributed the decline in earnings to weaker Nigerian operations caused by COVID-19.
The retail giant added that due diligence to finally exit Africa’s largest market is ongoing and expected to be finalised by the end of September 2020.
“The due diligence process is currently in progress and expected to be completed by the end of September 2020. Management considers it highly probable that a majority stake or the Group’s entire shareholding will be sold after the reporting date. The associated assets and liabilities are consequently presented as held for sale in the 2020 statement of financial position.”
According to Shoprite Group CEO Pieter Engelbrecht: “Overall, it has been a difficult six months for Supermarkets Non-RSA given lockdown regulations which impacted store openings, days and hours of trade, as well as severely restricting transport in some countries, impeding our employees and customers’ ability to get to our stores.”
Recall that Shoprite announced recently that it will exit Nigeria and Kenya due to underperformance.
