Shoprite Holdings, the retail giant from South Africa, has revealed plans to leave Ghana after 20 years, continuing its strategy of gradually withdrawing from a number of African nations.
The business said in a statement issued Tuesday, August 5, 2025, that it had obtained a legally binding offer for its seven stores and one distribution center in Ghana in June.
According to Shoprite, the sale is “highly probable” and is a component of a larger restructuring plan.
Additionally, Shoprite revealed on June 6 that it has signed a deal to sell its five locations in Malawi.
Regulators from the Reserve Bank and Malawi’s Competition and Fair Trading Commission must approve this deal.
The action is in line with Shoprite’s continuous attempts to streamline operations and return its attention to its most lucrative market, South Africa, according to Reuters.
Shoprite, which was formerly the biggest grocery chain on the continent, quickly grew throughout Africa, surpassing rivals like Pick n Pay and Walmart-owned Massmart.
It operated in roughly 15 nations at its height.
However, it has encountered increasing difficulties in a number of areas, such as rising inflation, volatile currencies, expensive import taxes, and leases that are valued in US dollars.
The corporation has recently withdrawn from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of the Congo as a result of these obstacles.
Shoprite faced operational inefficiencies and heightened competition from regional and local merchants in Ghana.
In order to improve its standing in South Africa, the corporation likewise reduced investment in its overseas branches.
Shoprite is confident in the performance of its core business despite the anticipated closures.
For the 52 weeks ending June 29, the business anticipates headline earnings per share to increase by 9.4% to 19.4%.
It is anticipated that sales from continuing operations will increase by 8.9% to 252.7 billion rand, or almost $14 billion.
Shoprite’s stock dropped 2.6% on the Johannesburg Stock Exchange on Tuesday morning after the announcement.
Source: newsthemegh.com