Shoprite is set to quit the Ugandan market after 21 years, the South African headquartered retail store has confirmed.
In a statement, Shoprite siad that they will also quit the market in Madagascar, citing a number of reasons.
“In line with thr group’s non-RSA review process, our operations in Madagascar and Uganda have been classified as discontinued,” the statement reads in part.
The new development comes after 21 years ever since Shoprite opened its first shop in Uganda.
Shoprite’s 2020 results indicated that they had accumulated Shs 43.5 billion in losses, a figure that was up from the Shs. 24.5 billion in losses that were registered in 2017.
Several reports have indicated that Carrefour, a UAE-based supermarket chain is now in talks to acquire Shoprite’s stake in Uganda.
According to the CEO African Magazine, Carrefour approached Shoprite and the two parties are now in talks.
Shoprite had earlier on in 2020 closed down its operations in Kenya after only two years having launched in Nairobi in 2018.
Shoprite then citied “continued under-performance, relative to return requirement.”