The South African Supermarket chain, Shoprite has been calling it quits from various African countries where is has been establishing business for the past 25 years.
Shoprite has been closing its stores and exiting from several African countries in recent years.
The Supermarket chain entered Tanzania in 2002, with the establishment of a big supermarket at the TFA mall in Arusha and later Dar-es-salaam and Kilimanjaro, but then closed shops a few years later.
Eventually, Shoprite would also be leaving Ghana, Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo (DRC).
At the moment, there are reports that Shoprite is also in the process of closing its supermarkets in Malawi, which according to observers, was expected.
Why is Shoprite closing its counters across the continent?
The company is citing financial losses and a need to focus on its core South African market as reasons for these series of exits.
But will Shoprite survive even in its home country of South Africa where other supermarkets are plentiful?
Anyway, here’s a more detailed breakdown of its continental closures
Tanzania:
Shoprite closed four supermarkets in Tanzania around 2007 after operating for only five years. In Arusha its former premises were taken over by Nakumatt of Kenya which later also closed shop.
In Dar-es-salaam and Kilimanjaro, the Shoprite supermarkets were inherited by Uchumi, also from Kenya but which later pulled out of business in Tanzania.
Nigeria:
Shoprite announced plans to discontinue its operations in Nigeria in 2020, eventually selling its Nigerian business to a local buyer according to Premium Times Nigeria.
Kenya:
Shoprite also exited Kenya, with its store opening program grinding to a halt and a store closure in Nairobi according to Trend type.
Uganda and Madagascar:
In 2021, Shoprite classified its operations in Uganda and Madagascar as “discontinued,” effectively confirming its withdrawal from those markets.
The Democratic Republic of Congo:
Shoprite announced its exit from the Democratic Republic of Congo in 2022, following its departures from other African countries.
The Supermarket culture
The Supermarket and Shopping Mall culture is yet to grow roots in most African countries where people prefer next door shops that only provide the basics sometimes with extended credits.
This explains why large shopping facilities will find it difficult to stay open in countries like Tanzania, Uganda and Malawi.
Shoprite
The Shoprite chain (which officially known as Shoprite Holdings Limited) is billed as Africa’s largest supermarket retailer.
The company’s headquarters are in Cape Town, South Africa, where it was founded in 1979.