Shoprite's Africa safari runs into quicksand
We’re attracting a more affluent customer with the value we offer
Africa's largest grocery retailer, Shoprite, is considering store closures and spending cuts in response to a disappointing performance in its operations outside SA. In its results presentation this week for the interim period to end-December 2019, the retailer said while things were going well in SA, the picture was less rosy in the rest of Africa, particularly in Angola, Nigeria and Zambia.Shoprite says negative factors include unstable currencies, import restrictions and limited local supplies, and in response it has negotiated rent reductions for 17 of its supermarkets and is trying to do the same for 16 others. It is also assessing the continued viability of unprofitable stores and will spend less on opening new ones. It has cut the number of new supermarkets planned for the 12 months ending June 2020 from 17 to 13. The company says it will continue operating in countries beyond SA's borders, but will limit future expansion while considering its options "with reg...
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