Shoprite to close operations in Ghana and Malawi, focusing on core markets.
South Africa’s largest grocery retailer, Shoprite Holdings, has announced it is selling its operations in Ghana and Malawi—a move that marks yet another step in its withdrawal from several African markets.
In a statement issued on Tuesday, the retail giant said it had received a binding offer in June for its seven stores and one warehouse in Ghana, with the sale described as “highly probable.”
In Malawi, an agreement was signed on June 6 to sell five stores, pending regulatory approvals from that country’s Competition and Fair Trading Commission and the Reserve Bank of Malawi.
A report by Reuters noted that the decision forms part of Shoprite’s broader strategy to consolidate its operations and focus more on its South African base, which remains its largest and most profitable market.
Shoprite had previously embarked on an aggressive expansion drive across the continent, outpacing rivals like Pick n Pay and Walmart-owned Massmart to become Africa’s leading supermarket chain, operating in about 15 countries at its peak.
However, challenges such as currency instability, high inflation, import duties, and dollar-denominated rents have made operations in several countries unsustainable. The company has already exited Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.
In Ghana, Shoprite has faced stiff competition from both local and regional players, along with operational difficulties. The company had also limited investments in its foreign branches, opting to redirect capital toward strengthening its South African presence.
Despite the exits, Shoprite said it anticipates strong performance from its remaining operations. The group expects headline earnings per share to rise between 9.4% and 19.4% for the 52 weeks ending June 29, while group sales from continuing operations are projected to grow by 8.9% to 252.7 billion rand (about $14 billion).
As of Tuesday morning, Shoprite’s shares had dropped by 2.6% on the Johannesburg Stock Exchange following the announcement.
