South African grocery giant Pick n Pay (PIKJ.J) has announced its exit from Nigeria by selling its 51% stake in a joint venture, marking a strategic retreat from the Nigerian market as part of broader restructuring efforts.
CEO Sean Summers revealed on October 28 that this move aligns with the company’s plan to streamline international operations amid financial challenges, including a significant half-year loss attributed to rising operational and borrowing costs.
Since entering Nigeria less than five years ago through a partnership with A.G. Leventis, Pick n Pay has operated two stores, including one in Lagos’s prominent Victoria Island. This withdrawal reflects a growing trend of multinational companies leaving Nigeria, where many struggle to maintain profitability.
In its latest financial report, Pick n Pay recorded a pre-tax loss of 1.1 billion rand ($62 million) for the 26 weeks ending August 25, up from a loss of 837.2 million rand during the same period last year. The company noted a 9.1% increase in trading losses due to shrinking profit margins in its core supermarket operations.
Despite these setbacks, Pick n Pay reported positive trends in its online and clothing sectors, along with improved performance in company-owned supermarkets. CEO Summers expressed “quiet confidence” in achieving a 50% reduction in trading losses for the Pick n Pay business by the end of the year.
