South Africa’s largest grocery retailer, Shoprite Holdings, has announced that it is selling its operations in Ghana and Malawi, continuing its ongoing effort to consolidate its business across Africa and focus more on its home market, Reuters reported.
In Malawi, the group signed an agreement on 6 June to sell five of its trading stores, though the transaction remains subject to regulatory approval from the Competition and Fair Trading Commission as well as the Reserve Bank of Malawi. In Ghana, Shoprite received a binding offer in June for the sale of seven stores and one warehouse, a transaction the company described as highly probable.
The retailer’s shares fell 2.6% following the announcement, reflecting investor concern over the shrinking footprint. The planned sales follow previous exits from Nigeria, Kenya, the Democratic Republic of Congo, Uganda, and Madagascar. Shoprite has also curtailed capital investments in its supermarkets outside South Africa as part of a broader strategy to prioritise its domestic operations.
The move marks another stage in the company’s strategic retrenchment from several foreign markets where operations have proven challenging. Shoprite had grown rapidly across the African continent, surpassing competitors such as Pick n Pay and Walmart-owned Massmart to become the leading food retailer in roughly 15 countries.
However, the company’s expansion beyond South Africa has faced multiple obstacles, including currency fluctuations, double-digit inflation, high import duties, and rentals denominated in US dollars. These factors made profitability in some markets increasingly difficult, prompting Shoprite to reassess its overseas operations.
Despite scaling back its African presence, Shoprite remains confident in its financial outlook. The company expects headline earnings per share from continuing operations to grow between 9.4% and 19.4% for the 52 weeks ending 29 June, up from a restated 11.85 rand in 2024. Group sales from continuing operations are projected to rise by 8.9% to 252.7 billion rand ($14 billion), demonstrating that its core domestic market continues to perform strongly.
