South Africa’s largest grocery retailer Shoprite has announced that it is withdrawing from Uganda and Madagascar, adding to its growing list of African departures.
Shoprite is one of the biggest retail outlet in Uganda as it has several branches in urban centres at different malls that include; Lugogo Mall, Victoria Mall in Entebbe, Acacia Mall in Kololo and Village Mall in Bugolobi.
According to Shoprite management, they have been reviewing its long-term options across Africa over the past year as currency devaluations, lower commodity prices and high inflation have hit household incomes and weighed on earnings.
The retailer also forecast an up to 25.3% rise in annual basic headline earnings per share from continuing operations.
Shoprite came in Uganda in 2000 and the collapse of UCHUMI and Nakumatt gave them an opportunity to take charge of the retail market. But according to source, the coming of Capital Shoppers, Quality Supermarkets and Mega Standard supermarkets brought stiff competition that is eventually pushing them out of Uganda.