Uganda’s largest shopping outlet Shoprite plans to exit the Ugandan market after over 20 years of providing full service.
One of Uganda’s leading shopping outlets Shoprite is set to quit the Ugandan market following over 20 years of full-service delivery.
In a statement, announcing their departure, Shoprite said they will also quit the market in Madagascar, citing several reasons.
“In line with the group’s non-RSA review process, our operations in Madagascar and Uganda have been classified as discontinued,” part of the statement read from the top retailer.
Earlier the management of Shoprite said it was refocusing its resources to more profitable markets have been in Uganda for now 21 years ever since it opened its first shop.
It must be remembered that Shoprite had already ceased its operations in sub- Saharan financial powerhouses Nigeria and Kenya.
The company had more than 2,900 outlets in 15 countries by the beginning of the year, including five in Uganda, before deciding to withdraw their operations from those countries.
Most Shoprite shops are located in Southern African countries.
This, however, comes after Shoprite registered an 8.4% fall amounting to sh784 million Rand (US$ 51.8 million), with Kenya, Uganda and Madagascar contributing about 46 million rands (US$ 3 million) of the losses in 2020. The figure was up from the Shs. 24.5 billion in losses that were registered in 2017.
Meanwhile, Shoprite has over the years reiterated that they have underperformed in most of the East African countries where they have been operating.
This is one of the main reasons many think has led to their departure.
Earlier on there were several reports that they (Shoprite) had agreed to take over the ownership of Massmart’s food unit for as much as 1.36 billion Rand (US$90 million) citing that this also influenced them to quit the Ugandan market to focus on Southern Africa.
Since then, many reports have pointed out the fact that a United Arab Emirates-based franchise holder for French retailer, Carrefour is holding talks that will see them take up Shoprite’s position and rights in Uganda including its premises and position.
Being Africa’s largest food retailer with stores in 15 countries, Shoprite has been in Uganda since 2000 when they first opened their shop in the country employing nearly 300 Ugandans in five branches.
