South African supermarket chain Pick n Pay has announced it will exit Nigeria, marking another retreat from the Nigerian market by a major foreign business.
Sean Summers, the CEO of Pick n Pay, revealed that the company will sell its 51% stake in a Nigerian joint venture with A.G. Leventis (Nigeria).
Reuters reports that Pick n Pay currently operates two stores in Nigeria and entered the market less than five years ago through a partnership with A.G. Leventis (Nigeria) Plc.
Summers explained that the decision is part of the company’s strategy to restructure operations outside its home market in South Africa.
In 2020, when Pick n Pay opened its first store in Nigeria, there was a buzz of excitement.
David North, group executive for strategy and corporate affairs, was quoted as saying in 2020:
“The appeal is that it is a hugely underserved consumer market and is going to grow. We have to look through the short term and into the long-term potential.”
“Pick n Pay will instead focus on smaller neighbourhood stores, with partner A.G. Leventis providing the local know-how, the understanding of the regulatory process and the local stakeholders.”
Pick n Pay is not the only company that has withdrawn from Nigeria in recent years as companies battle harsh economic conditions amid the naira devaluation.
South Africa’s Shoprite Holdings and Mr Price have all sold off their shares, while multinational companies like PZ Cussons and GSK have also announced their exits from Nigeria.
