South African grocery retailer Pick n Pay has announced plans to sell its 51 percent stake in a joint venture as part of an exit from the Nigerian market.
According to Reuters, Pick n Pay’s CEO, Sean Summers, stated that the decision forms part of a restructuring strategy outside of South Africa.
The retailer operates two stores in Nigeria, having entered the market less than five years ago through a partnership with Nigeria’s A.G. Leventis.
Pick n Pay’s exit adds to a growing list of multinational companies withdrawing from Nigeria.
On June 24, another South African retailer, Shoprite, announced the closure of its Abuja store following a comprehensive review of the store’s financial viability and the current business climate. This followed the earlier closure of Shoprite’s store in Kano in January 2024.
In December 2023, Jumia also announced the shutdown of its food delivery service, Jumia Food, in Nigeria. According to Jumia, the decision was taken after a thorough review concluded that current market conditions and the economic climate made the food delivery business unsustainable.
Several other multinationals, including GlaxoSmithKline (GSK) Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark, have also exited Nigeria, citing the country’s challenging business environment.