South Africa’s largest retail franchise Shoprite has announced that it is exiting Uganda and Madagascar, adding to its growing list of African departures.
In addition to Tanzania and Kenya where the grocery retailer has closed shop, it is said that Shoprite is set to close its stores in other parts outside South Africa including Malaysia and Nigeria. This is because of the rise of several local retail brands and covid -19 effects.
Shoprite is arguably the biggest retail outlet in Uganda as it has several branches in urban centres at different malls that include; Lugogo Mall, Victoria Mall in Entebbe, Acacia Mall in Kololo and Village Mall in Bugolobi.
In a statement, the management of Shoprite said they have been reviewing its long-term options across Africa over the past year as currency devaluations, lower commodity prices and high inflation have hit household incomes and weighed on earnings.
The retailer also forecast an up to 25.3% rise in annual basic headline earnings per share from continuing operations.
The exit of Shoprite from Uganda will mark the end of 20 years of serving the Ugandan market, having opened its first store in Kampala in 2000.
The collapse of UCHUMI and Nakumatt had given Shoprite an opportunity to take charge of the retail market. However, according to source, the emergence of operators like Capital Shoppers, Quality Supermarkets and Mega Standard supermarkets brought stiff competition that is eventually pushing them out of Uganda.