South Africa’s largest grocery retailer “Shoprite” has announced that it is withdrawing from Uganda and Madagascar, adding to its growing list of African departures.
Ugandans and Nigerians are the most stubborn people in Africa when it comes to supporting their own. A shoprite staff who asked ZambianMusic.net not to disclose his identity, told this website that, Ugandans mostly support their local investors, hence one of the reasons “Shoprite” a company owned by foreigners has lost business in the East African landlocked country.
According to Shoprite management, they have been reviewing its long-term options across Africa over the past year as currency devaluations, lower commodity prices and high inflation have hit household incomes and
The retailer also forecast an up to 25.3% rise in annual basic headline earnings per share from continuing operations.
In 2020, Shoprite had announced plans to exit the Nigerian and Kenya markets after posting continuous decline in sales from its operations.
Shoprite came in Uganda in 2000, the collapse of UCHUMI and Nakumatt then gave them an opportunity to Shoprite to take charge of the retail market.
But according to source, the coming of local Ugandan investors like: Capital Shoppers, Quality Supermarkets and Mega Standard supermarkets brought stiff competition that is eventually pushing them out of Uganda.