South African grocery retailer, Pick n Pay has exited Nigerian market.
The company said it will sell its 51% stake in a joint venture as part of a broader restructuring strategy aimed at improving its financial performance outside of its home market.
Pick n Pay, which entered Nigeria less than five years ago through a partnership with A.G. Leventis (Nigeria), currently operates only two stores in the country. Its first store, located in the upscale Victoria Island area of Lagos, was opened in 2018.
The retailer’s exit from Nigeria follows a trend of multinational companies leaving the African nation due to profitability challenges. Pick n Pay itself has been struggling financially, reporting a larger half-year loss driven by trading losses in its core supermarket operations and rising borrowing costs.
Despite these challenges, the company reported positive performance in its clothing and online businesses, as well as encouraging improvements in its company-owned supermarkets. CEO Sean Summers expressed optimism about reducing trading losses in the Pick n Pay business by up to 50% for the full year.
Meanwhile, Pick n Pay’s discount Boxer division continues to thrive, with trading profit increasing by 16%. The company plans to list Boxer on the Johannesburg Stock Exchange by the end of the year, aiming to raise up to 8 billion rand ($452 million) in what could be the continent’s largest offering this year.
