Pick n Pay Exits Nigeria Amid Wave of Retail Market
South African grocery retailer Pick n Pay has announced its exit from Nigeria, selling its 51% stake in a joint venture with A.G. Leventis. The decision is part of a broader strategy to refocus on core markets and streamline international operations, according to Chief Executive Officer Sean Summers.
Pick n Pay entered the Nigerian market less than five years ago, operating two stores. However, economic instability, high operational costs, and Nigeria’s challenging business climate have made it difficult for multinationals to thrive. “This exit aligns with our shift to prioritise investments closer to home in South Africa,” Summers told Reuters.
The retailer’s withdrawal mirrors a growing trend of multinational exits from Nigeria. In June, another South African retail giant, Shoprite, shut down its Abuja store, followed by the closure of its Kano branch earlier this year, both citing economic challenges.
Similarly, Jumia, an e-commerce platform, closed its food delivery service, Jumia Food, in Nigeria in December 2023, citing unsustainable market conditions.
Beyond retail, major companies from other sectors, including GlaxoSmithKline (GSK) Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark, have also exited the country in recent years, highlighting the difficulties foreign businesses face in Nigeria’s volatile economy.
Pick n Pay’s exit signals continued pressure on foreign businesses navigating Nigeria’s complex market, further emphasising the need for operational recalibrations amid economic headwinds. CBN and IFC Join Forces to Boost Nigeria’s Economy
