South African grocery retailer, Pick n Pay has sold its 51 percent stake in a joint venture ahead of its exit from the Nigerian market.
In an announcement made by it’s CEO, Sean Summers, he said the decision is part of a broader restructuring strategy outside its home market.
Pick n Pay, entered Nigeria less than five years ago through a partnership with A.G. Leventis, currently operates two stores in the country.
The grocery retailer dared to enter the Nigerian market four years ago when other giants in the retail industry had planned to exit the country.
The exit comes amidst plans by the federal government to attract much-needed foreign investment in the country.
Consumer goods companies have been blighted by inflation which has eroded the purchasing power of Nigerians coupled with significant depreciation of the Naira.
Recall that in June 2024, another South African retail giant- Shoprite announced the closure of its Abuja store citing harsh business climate in Nigeria which has negatively impacted its financials, just like it closed it’s Kano branch in January 2024.
Earlier, one of Africa’s largest online retail store, Jumia announced the complete shutdown of its food delivery arm, Jumia Food in Nigeria, citing a difficult business environment and challenges in achieving sustainable profitability.
However, the rising cost of operations and persistent inflationary pressures are pushing numerous companies, including small and medium-sized businesses, out of the Nigerian market.
