South African supermarket group, Shoprite Holdings, has announced its plan to sell or close its remaining two stores in Kenya by the end of December.
This was contained in the company’s end-of-year report titled, ‘Reviewed Results For The 52 Weeks To 28 June 2020’ released on Tuesday.
The company said it will be leaving the East African country two years after it began operations in the country. It said the decision became necessary because its business in Kenya had underperformed.
“Kenya has continued to underperform relative to our return requirements,” the company said after posting a 16.6 per cent rise in annual group earnings.
“Given the ensuing economic impact of COVID-19 and our experience to date, we expect to close or dispose of our remaining two stores in the region in the year ahead.”
Shoprite had in August also announced plans to discontinue its operation in Nigeria.
“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,” the company had said.
“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.”