A leaked internal memo of supermarket giant, ShopRite, shows that though the popular outlet may be leaving Nigeria, it is bringing local investors to boost its business in the country.
A copy of the memo sighted by Everyday.ng and signed by its General Manager, Carl Erickson, titled, “Expansion of Retail Markets Nigeria Limited” dated the last day of July to all staff shows that the popular supermarket may have got new local investors to take over from where it is leaving off.
A denial by ShopRites Public Relations (PR) Consulting firm, Chastex Consult through its Country Director, Ini Archibong, however appears not to hold water in view of the leaked memo, which substantiates ShopRite’s move for new investors.
Archibong in a Vanguard newspaper publication insisted: “Shoprite is not leaving Nigeria.
“We have only just opened to Nigerian investors which we have also been talking to just before now. We are not leaving, who leaves over a $30billion investment and closes shop? It doesn’t sound right. We have only just given this opportunity to Nigeria investors to come in and also help drive our expansion plan in Nigeria. So we are not leaving.
“I have tried to say this to many people as I can. There should be no panic at all and all of that. There is no truth in that report.”
But many see Archibong’s comments as an attempt to douse the tension and panic arising from the report. There are already fears of job losses.
Recall that the popular retailing outlet, with South African parentage, but with branches in major cities of Nigeria, sent shock waves across the country when its plans to leave Nigeria after 15 years of operation due to decline in sales, was made public on Monday.
In a trading update filed on the Johannesburg Stock Exchange, the company announced it had been approached for a potential buy over by some Nigerian investors.
“Following approaches from various potential investors, and in line with our re-evaluation of the Group’s 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.
“As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time.”
The update indicated that International supermarkets (excluding Nigeria) contributed 11.6 per cent to group sales and reported 1.4 per cent decline in sales from 2018.
But Erickson’s memo reads in full: “It gives me great pleasure to inform you that we are at the brink of unlocking further potential for Retail Supermarkets Nigeria in the foreseeable future. You will agree with me that Retail Supermarkets Nigeria Limited has shown great promise since its inception in 2002.
“The expansion of the food retail business in Nigeria to a greater consumer market should remain everybody’s shared vision. It has, however, become apparent that the best manner in which to do this is by engaging Nigerian investors who share in this vision. In so doing we will be creating a truly Nigerian business run and owned by Nigerians for the Nigerian market.
“In this regard I take pleasure in informing you that we have identified interested Nigerian investors that share in this vision and we will now explore various possibilities of making it a reality.
“Our experienced management together with the new investors will continue to build the business in Nigeria. We will further inform you, our valuable staff, of any further updates in this regard.”
