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.
CEO Sean Summers announced the decision as part of a broader restructuring strategy outside its home market.
Pick n Pay, which entered Nigeria less than five years ago through a partnership with A.G. Leventis, currently operates two stores in the country.
The grocery retailer braved the odds to enter the Nigerian market four years ago when other giants in the retail industry had planned to exit the country.
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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.
In June 2024, another South African retailer- Shoprite announced the closure of its Abuja store citing harsh business climate in Nigeria which has negatively impacted its financials.
The closure of Shoprite’s business in Abuja in June follows a similar closure of Shoprite’s store in Kano in January 2024.
Profitability remains a significant challenge for many retail operators managing supermarkets, discount stores, and grocery outlets across Nigeria.
The rising cost of operations and persistent inflationary pressures are pushing numerous companies, including small and medium-sized businesses, out of the market.
Earlier, 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.
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