ShopRite To Exit Nigeria-Mr Price
Mr. Price has revealed plans to close ShopRite store in Nigeria due to losses, according to them, it will be closed 2021 after they complete their analysis.
This was contained in a statement released by Mr Price titled “Trading environment”
Mr Price, also known as MRP, is a publicly traded retail company based in South Africa, well known for its focus on value. The group retails apparel, as well as homeware and sportswear, through owned and franchised stores across 14 countries, primarily in Africa.
It also services customers globally through its online stores. It operates under different store names, such as Mr. Price Sports, ShopRite, Mr. Price Home, as well as a home decor store called Sheet Street.
The statement reads parts, “Trading environment
This operational update, inclusive of voluntary earnings per share (EPS) and headline earnings per share (HEPS) guidance, is more comprehensive than usual for the purpose of providing shareholders and investors with an understanding of how the Group has traded during the COVID-19 pandemic.
“Despite difficult circumstances, in a year incorporating the COVID-19 lockdown and accompanying regulations governing trade, transport and operations, the Group increased total sale of merchandise for the 52 weeks to 28 June 2020 (including the impact of hyperinflation in the prior year) by 6.4% to approximately R156.9 billion. Like-for-like growth for the year was 4.4%”.
“The Shoprite Group remained committed to meeting the demands of our customers, whilst focusing on value and remaining solution oriented. This was evidenced, inter alia, by our digital voucher innovation, ongoing private label development and the conversion of our Checkers Food Services (CFS) business to include a consumer facing offering .
“In addition, the rapid scaling of our innovative Checkers Sixty60 digital shopping application, which after a test phase introduction in November 2019, was operational from 87 stores nationwide by June 2020.
” As a Group, our initiatives pertaining to inventory and capital management began early in our financial year and carried on unabated despite the nationwide lockdown. From a liquidity and net debt standpoint, the Group has managed to meaningfully improve its financial position since reporting in February 2020 on our first half results.
The transaction involving the sale of our distribution centres to Equites Property Fund Limited is in its final phase of Competition Commission approval and we anticipate transfer will be affected during the first half of the 2021 financial year.
“Supermarkets RSA’s sales growth (inclusive of liquor) of 8.7% for the year was underpinned by a strong second half, in which sales grew 7.5%, notwithstanding a high second half base in the prior year during which fourth quarter sales grew by 9.4%.
As a result of lockdown, customer visits for the year declined by 7.4%, however, average basket spend increased by 18.4%. Superb execution across the business coupled with considerable efforts from our suppliers resulted in volume growth of 2.3% for the year. Market share figures insofar as they are available (up to the end of May 2020) reflect consecutive monthly market share gains for the past 15 months.
“In equally, if not more difficult circumstances resulting from COVID-19 lockdown regulations, Supermarkets Non-RSA’s second half reported an increase in sales of 0.1%, resulting in an overall decline in sales of 1.4% for the year but in constant currency increased by 6.6%.
” Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited.
As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time”.
Nwada Ugochinyere Onyechere reporting, Obinwannem News
