SHOPRITE’S NIGHTMARE AND RIGHTING THE NAIRA

Retail Supermarkets Nigeria popularly know as Shoprite in recent years have been struggling in Nigeria, majorly because of unfavorable policies and the multiplier effect of xenophobic attacks. According to Nairametrics in April, Shoprite reported sales decline of 8.1% in H2 of 2019 directly traced to the September 2019 xenophobic attacks. Fast-forward to 2020, Shoprite Nigeria has recorded a sales decline of 6.2% as at June.

According to the Operational and Voluntary trading update, the result of the operating model in Nigeria, the board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited to various potential investors online, however structure and finalization of the process would be communicated at the appropriate time.

While there is no affirmative official statement from the organization about shutting down its operations in Nigeria as rumored by major media organizations, such decision would have directly or indirectly affected 25 stores across eight states in the Federation, with more than 2000 employees and over 300 leading Nigerian suppliers.

To continue to crowd in investment into the country, we all have a collective duty of peace where the economy is free from fear. Also, A-FEEDi further recommends that there is need for a more transparent arbitrage system that ensure a more decent business environment for existing and prospecting investors.

Finally, neither the incessant tinkering by the CBN with the exchange rate provides an healthy indicator of the state of the economy nor does it foster a competitive and more predictive atmosphere for investors. In the light of this, a floating exchange rate that is subjected to market forces will be more business-friendly #shoprite #naira #entrepreneur #entrepreneurmindset #afeedi #afeediafrica

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