South African retail giant Shoprite Holdings is continuing to reduce its presence across Africa, with plans to exit Ghana and Malawi. These latest moves mark the company’s sixth and seventh departures from African markets outside of its home country in the last four years. The decision is part of a strategic recalibration, with the company citing challenges such as currency volatility, economic policies, and lease agreements that have impacted profitability in these regions.
The company has confirmed that a deal was made on 6 June for a subsidiary, Shoprite Malawi, to sell its five stores, though the agreement is still awaiting regulatory approval. In Ghana, a binding offer was received in June for the acquisition of its seven stores and a distribution warehouse. The company has classified both the Ghanaian and Malawian operations as discontinued in its financial statements.
Shoprite’s retreat from its pan-African ambitions is in sharp contrast to its strong expansion within South Africa. In the last year, the retailer has opened hundreds of new stores in its home market, expanded its e-commerce delivery service, and diversified into other retail sectors such as pet supplies and healthcare. The announcement had a negative impact on investor sentiment, with Shoprite’s shares falling by 2.60% on the Johannesburg Stock Exchange.