Pick n Pay, the second largest supermarket chain store in South Africa, plans to open its first store in Nigeria.
The retailer – which has stores in Botswana, Zambia, Zimbabwe, Lesotho, Namibia, and Swaziland will enter a market that rivals like Shoprite and Mister Price are withdrawing from.
Pick n Pay’s Nigeria venture will be a partnership with A G Leventis, a group with investments in West Africa ranging from agricultural equipment to property management.
The South African supermarket chain believes it can overcome problems that have hit competitors, like currency devaluations and logistical challenges, as well as barriers to repatriating profits.
Pick n Pay’s strategy in Nigeria will focus on opening small neighbourhood stores, whereas other foreign retailers have established flagship stores in large shopping centres.
On Tuesday the company reported a 56% drop in profits for the first half of the financial year, following constraints caused by South Africa’s strict lockdown, with reduced trading hours, a ban on sales of alcohol and tobacco, plus restrictions on sales of clothing.