South African retail outlet, Mr. Price has announced plans to exit Nigeria to concentrate on its home market.
Mark Blair, chief executive of the clothing and homeware retailer, told analysts during the announcement of the group’s full-year results presentation on Thursday.
In 2019, the clothing and fashion retail company closed its stores in Australia and Poland.
“Quite frankly I’m not prepared to invest any further whether it’s an investment in time or in money into a country that is volatile as it is,” Reuters quoted Blair to have said.
“In the early days we were making money but now we just came up against too many roadblocks, whether it’s getting the money out, etc.”
According to Blair, the company has closed four of its five stores in Nigeria and would close the last one in a few months.
“We are really going to focus on South Africa in a more concentrated way,” Mark Stirton, the company’s chief financial officer, said.
Getting back to South Africa full time will come with its challenges, as the company said it looks forward to “a lot of distress among retail peers” in South Africa.
The company didn’t announce dividends as part of measures to keep funds as it also revealed there is a temporary freezing of head office salaries.
The Coronavirus pandemic has affected businesses in Nigeria as most companies have had to be placed on a lockdown amid other strict measures that have been deleterious to sales.