News spreading like wild fires indicated that one of Africa’s leading retail store Shoprite was set to quit several markets in Africa
Among the markets Shoprite was set to abandon on include Ugandan market after 21 years and Madagascan market after 19 years.
REASONS TO WHY SHOPRITE WON'T CONTINUE WITH ANY OPERATIONS IN UGANDA.
Shoprite’s 2020 results indicated that they had accumulated Shs 43.5 billion in losses, a figure that was up from the Shs. 24.5 billion in losses that were registered in 2017, a big loss so hard to handle.
Currency devaluations in both Uganda and Madagascar also forced the lowering of commodity prices.
Uganda’s economy being characterised by high inflation rates which ends up decreasing disposable household incomes coercing several Ugandans to buy local resulting into under-performance in the five outlets across the country.
The introduction and growth of online shopping in Uganda for example Jumia greatly pushed many Ugandans away from traditional supermarket way of shopping.
The whopping costs incurred by the company to adhere to the Covid-19 pandemic might have been the final nail in the coffin.
Its also important to note that Shoprite had earlier on in 2020 closed down its operations in Kenya after only two years having launched in Nairobi in 2018, so actually its no surprise they shutting down.
Trusted Sources have also indicated that Carrefour, a UAE-based supermarket chain is now in talks to acquire Shoprite’s stake in Uganda.
