While there has been some progress, the country needs to unleash its potential for retail markets
In 2005, former Shoprite CEO Whitey Basson said he was not expecting any competition in Nigeria any time soon, after it took him several years to get the first store up and running in Lagos.
In 2012, Shoprite reported that sales in its supermarkets in the rest of Africa grew 28% compared with 9.8% at home. At the time it had 47 new African stores in the pipeline, most of them earmarked for Nigeria and Angola. But the ban was also one of the reasons for the slow development of malls. It included a prohibition on finished clothing, which precluded the entry of fashion retailers, which would later make up a sizeable portion of tenants in the new developments. It was finally lifted after eight years, unlocking the growth of formal retail in Nigeria.
The retail market then developed into the channels most evident today — sprawling markets, tabletop sellers and mini plazas, with formal retail growing only in recent years. The rollercoaster ride has been tough for companies, and this makes it even more important to have a business model that can roll with the punches. Many of the SA companies that have disinvested have blamed the tough operating environment rather than their own business models and strategies for their pain.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
TIISETSO MOTSOENENG: Shoprite’s Nigeria exit an embarrassing admission of defeat from CEOYet the share’s gain of almost 8% since the announcement suggests investors welcome the ruthless prioritisation of returns on capital
Read more »
Alex Smith takes over at Net1 as Herman Kotzé bows outExit comes as company prepares to put subsidiary Cash Paymaster Services into business rescue
Read more »
Robbers leave fallen comrade at blast scene, outrun copsProvincial police said the armed men entered the supermarket and detonated a safe. After the explosion, which killed one of the suspects, his accomplices took an undisclosed amount of cash and left him under the rubble.
Read more »
'I am not a racist‚' says CEO HP Prinsloo as tension continues to simmer in North West cricketNorth West Cricket (NWC) chief executive officer HP Prinsloo has denied allegations that he frequently makes racist comments in public and has very little regard for transformation obligations.
Read more »
WATCH: Stock picks — Shoprite and Auto TraderChantal Marx from FNB Wealth & Investments and Jean Pierre Verster from Protea Capital Management talk to Business Day TV
Read more »
MTN’s exit from the Middle East ‘not a fire sale’Operations from the region contribute about 4% to earnings, with the mobile operator saying profits doubled in its half-year to end-June
Read more »