South African retail giant Shoprite Holdings has confirmed plans to sell its operations in Ghana and Malawi, as part of a broader strategy to consolidate its African business and focus more heavily on its domestic market, according to a report by Reuters.
Shoprite, the continent’s largest grocery retailer, had previously expanded aggressively across Africa, outpacing competitors like Pick n Pay and Walmart-owned Massmart to establish a strong presence in about 15 countries. However, its operations in several markets—including Nigeria and Angola—have been challenged by economic instability, currency depreciation, high inflation, steep import duties, and dollar-denominated rent obligations.
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In its latest move, Shoprite announced on Tuesday that it has signed a deal to sell its five stores in Malawi, pending regulatory approvals from the country’s Competition and Fair Trading Commission and the Reserve Bank of Malawi. In Ghana, the company said it received a binding offer in June for the sale of seven retail outlets and one warehouse. The deal is considered “highly probable,” the group noted.
Following the announcement, Shoprite’s shares fell by 2.6% at 07:53 GMT.
The exit from Ghana and Malawi adds to a growing list of African markets Shoprite has left in recent years, including Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo. The company has also been cutting back capital investments in its non-South African operations, signaling a clear strategic pivot toward home-ground growth.
Despite these withdrawals, Shoprite reported strong performance in its core business. The retailer expects headline earnings per share from continuing operations to increase between 9.4% and 19.4% for the 52 weeks ending June 29, rising from a restated 11.85 rand in 2024. Group sales from continuing operations are projected to grow by 8.9%, reaching 252.7 billion rand (approximately $14 billion).
Story By: Afia Ohenewaa Akyerem