By Kayode Awojobi
It was a news all over the media on the 3rd of August following a press release from the management of Shoprite international on operational and voluntary trading update (52 weeks ended 28 June 2020), whereby it was stated in the report that their branch in Nigera will be classififed as a discontinued operation and this indeed has generated different reactions from Nigerians and several media outlets as many referred to the phrase “discontinued operation” from Shoprite management as an exit from Nigeria after 15years of business transaction in the most populated nation in Africa while many referred to it as an opportunity for Nigerian investors to invest in the business of Shoprite.
As stated in the statement released; Nigeria – discontinued operations- Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited. As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.
While this part of the statement can well be expatiated by the sender of the message, many business tycoons have stated that if Shoprite should leave Nigeria as assumed by many Nigerians, the decision would be of huge deduction to their income due to the very fact that Nigeria is well populated and a marketable place compared to other Africa countries. Whatever may be the case, time will tell.