South African retailer Massmart to sell 14 game stores in Nigeria and 4 other African countries – Nairametrics
South African retail giant Massmart has announced plans to join competitor Shoprite to sell assets in West and East Africa as it concludes the sale of 14 stores in Nigeria, Ghana, Uganda, Kenya and Tanzania.
This is what its managing director, Mitch Slape, revealed on Friday, while reported by Reuters. Massmart has revealed reasons including currency volatility regarding its Nigerian business and declining consumer demand.
“The performance and the complexity of running these companies is something we really needed to address. We have launched a formal sales process, we are currently in talks with potential buyers to take over these stores ”, Slape said at an investor meeting.
“But that’s not enough. Reaching the break-even point won’t be enough for us to be happy, we really need to bring Game back to a healthy level of profitability and performance,” he added.
It comes after the company, majority owned by U.S. retail giant Walmart, reported a half-year loss.
Massmart says the decision to pull out of the Nigerian and East African markets will result in annual profit before interest and taxes of 750 million rand ($ 50.24 million).
What you should know
Recall Nairametrics reported in June that Shoprite’s operations in Nigeria were acquired by Ketron Investment Limited, a Nigerian company owned by a group of institutional investors led by Persianas Investment Limited after approval by the Federal Competition Commission and consumer protection (FCCPC).
“We are delighted to complete the acquisition of Shoprite, ensuring the continued operations of one of Nigeria’s biggest retail success stories. We look forward to building an even stronger business as a result of our acquisition and are excited about the greater impact we will achieve for the benefit of our customers and other stakeholders, now and in the future, ” Tayo Amusan, chairman of Ketron Investment Limited, said.