Shoprite Holdings, South Africa’s biggest grocery retailer, has announced it will exit the Uganda and Madagascar markets.
“In line with the group’s non-South Africa review process, our operations in Madagascar and Uganda have been classified as discontinued,” Shoprite said in its trading statement, without any further details.
Shoprite has been in Uganda since 2000, where it has five stores. It entered the Madagascan market in 2002 and operates 10 stores.
The supermarket retailer expanded aggressively in Africa, becoming the continent’s largest food retailer with more than 2,300 corporate-owned stores in 15 countries.
The company’s entry into markets such as Angola and Nigeria was marred by currency volatility, lower commodity prices, and double-digit inflation, which led to lower household incomes. High import duties also contributed, forcing Shoprite to take a decision to review its Africa portfolio last year.
The review included closing its Kenyan operations, selling its Nigerian business to local buyer Ketron Investment and restricting capital allocations to its supermarkets outside of South Africa.
“In line with the group’s non-South Africa review process, our operations in Madagascar and Uganda have been classified as discontinued,” Shoprite said in its trading statement, without any further details.