Pick n Pay to exit Nigeria, sells 51% stake in joint venture
South African grocery retailer, Pick n Pay has disclosed that it will exit Nigeria by selling its 51% share of a joint venture as part of plans to restructure outside of its home market.
According to Reuters, the CEO, Pick n Pay, Sean Summers stated this Monday, that the move is part of its plans to restructure outside of its home market.
The company entered the Nigerian market less than five years ago through a partnership with A.G. Leventis (Nigeria).
It should be noted that the exit of Pick n Pay adds to a growing list of multinationals exiting Nigeria.
On June 24, another South African retailer, Shoprite, announced the closure of its Abuja store, after a thorough evaluation of the store’s financial situation and the current business climate.
The closure followed the earlier shutdown of Shoprite’s store in Kano in January 2024.
In December 2023, Jumia also announced the shutdown of its food delivery business, Jumia Food, in Nigeria.
According to Jumia, the decision was necessary after a thorough review revealed that the current market conditions and economic climate make the food delivery business unsustainable.
Also, several companies, including multinationals like GlaxoSmithKline (GSK) Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark, have exited Nigeria, citing the challenging business environment in Nigeria.
According to Jumia, the decision was necessary after a thorough review revealed that the current market conditions and economic climate make the food delivery business unsustainable.
[Vanguard]
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