South African grocery retailer Pick n Pay has announced its exit from Nigeria, planning to sell its 51% stake in a joint venture as part of a restructuring strategy to improve financial performance outside South Africa.
Entering Nigeria less than five years ago through a partnership with A.G. Leventis, Pick n Pay currently operates only two stores, with its first opened in 2018 in Lagos’s Victoria Island.
The decision follows a trend of multinational companies leaving Nigeria due to profitability challenges.
Pick n Pay has faced significant financial difficulties, reporting a half-year loss due to trading deficits and rising borrowing costs.
However, the company has seen positive results in its clothing and online divisions, with CEO Sean Summers aiming to reduce trading losses by up to 50% for the year.
Meanwhile, Pick n Pay’s discount division, Boxer, continues to perform well, boasting a 16% increase in trading profit.
The company plans to list Boxer on the Johannesburg Stock Exchange by year-end, seeking to raise up to 8 billion rand ($452 million) in a potential record offering for the continent.
