JUST IN: ‘Pick n Pay’ Leaves Nigeria
Pick n Pay, a prominent South African grocery retailer, has announced its decision to exit the Nigerian market, selling its 51% stake in a joint venture with A.G. Leventis.
The company, which has operated two stores in Nigeria, since entering the market less than five years ago, made the decision as part of a larger strategy to focus on core markets and streamline international operations.
Reuters reports that Sean Summers, Pick n Pay’s CEO, explained that the exit aligns with the retailer’s shift to prioritise investments closer to its home base in South Africa.
The decision reflects challenges faced by multinational companies operating in Nigeria’s volatile business environment, marked by economic instability and high operating costs.
Pick n Pay’s exit comes amid a trend of retail giants withdrawing from Nigeria. In June, fellow South African retailer Shoprite announced the closure of its Abuja location after an assessment of the store’s performance and the broader economic climate.
Earlier this year, Shoprite also closed its Kano branch, citing similar financial concerns.
Meanwhile, in December 2023, Jumia announced the closure of its food delivery service, Jumia Food, in Nigeria.
The company stated that a comprehensive review showed that current market conditions and the economic climate made the business unsustainable.
However, several other companies, including multinationals like GlaxoSmithKline (GSK) Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark, have also exited Nigeria, citing the challenging business environment.
