South African grocery retailer Shoprite plans to exit Ghana and Malawi
The supermarket retailer had expanded extensively in Africa, surpassing rivals such as Pick n Pay (PIKJ.J), opens new tab and Walmart-owned Massmart to become the continent's leading food retailer in about 15 countries.
But forays into markets, including Angola and Nigeria, were marred by currency volatility, double-digit inflation, high import duties and dollar-based rentals.
On Tuesday it said Shoprite Malawi signed an agreement on June 6 to dispose of five trading stores, pending certain conditions, including approval from the Competition and Fair Trading Commission as well as the Reserve Bank of Malawi.
In Ghana, the group received a binding offer in June for seven trading stores and one warehouse. The sale is deemed highly probable, Shoprite said.
By 0753 GMT the company's shares were down 2.60%.
The planned sales follow exits from Nigeria, Kenya, Democratic Republic of Congo, Uganda and Madagascar. Shoprite had also restricted capital allocations to its supermarkets outside South Africa.
The retailer also said it expects headline earnings per share from continuing operations to rise between 9.4% and 19.4% in the 52 weeks ended June 29, up from a restated 11.85 rand in 2024.
It expects group sales from continuing operations to rise by 8.9% to 252.7 billion rand ($14 billion).
($1 = 17.9954 rand)
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