Shoprite may consider Africa exits as sales fall away from home
JOHANNESBURG – Shoprite Holdings Ltd. started a review of supermarket operations outside South Africa and would consider exiting certain countries if that would help reverse regional sales declines.
Africa’s biggest grocer reported a 4.9% fall in third-quarter revenue when its main market is excluded, the Cape Town-based company said at the start of its annual general meeting on Monday. Weaker currencies weighed on performance and the Nigerian business was affected by xenophobic attacks — a response to violence in South Africa against immigrants from elsewhere on the continent.
“We are not scared to take the hard decisions,” Chief Executive Officer Pieter Engelbrecht told investors, adding that leaving certain markets would be considered. Other measures including cost reductions are underway, he said.
Source: iol.co.za