South African retail giant Shoprite Holdings has announced plans to withdraw from Ghana and Malawi, as part of a broader strategy to streamline its operations across the continent.
The company said it had received a binding offer in June for its seven stores and one warehouse in Ghana, adding that the sale was now “highly probable.” In Malawi, Shoprite confirmed that it signed an agreement on 6 June to sell five stores, pending regulatory approval from the country’s Competition and Fair Trading Commission as well as the Reserve Bank of Malawi.
The move comes as Shoprite continues to consolidate its operations, placing greater emphasis on its core South African market, which remains the group’s most profitable.
At its peak, Shoprite operated in around 15 African countries, having outpaced rivals such as Pick n Pay and Walmart-owned Massmart. But the retailer has since scaled back, citing operational difficulties in various markets, including currency volatility, high inflation, import duties, and dollar-based rental agreements.
The company has already exited several other African countries, including Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.
In Ghana, Shoprite faced intense competition from both local and regional supermarket chains, while also grappling with logistical and financial challenges. Analysts say the company’s decision to scale back international operations reflects a shift in capital allocation toward more secure and high-performing domestic ventures.
Despite the retrenchment, Shoprite said it remains optimistic about future growth. The group expects headline earnings per share to rise between 9.4% and 19.4% for the 52 weeks ending 29 June. Sales from continuing operations are projected to increase by 8.9% to 252.7 billion rand (approximately $14 billion).
Shares in Shoprite fell 2.6% on the Johannesburg Stock Exchange following Tuesday’s announcement.
