South African supermarket chain Pick n Pay is leaving Nigeria by selling its 51% share in a partnership with A.G. Leventis. This is part of a larger plan to reorganise their business. CEO Sean Summers made the announcement on Monday, mentioning difficulties in the Nigerian market.
Pick n Pay started in Nigeria less than five years ago, running two stores in tough business conditions. This decision comes after another South African retailer Shoprite closed its stores in Abuja in June 2024 and Kano in January 2024.
Nigeria’s consumer goods industry has many problems, like high inflation, limited access to foreign currency, increasing energy costs, and less money for people to spend. Recently, companies like Diageo, GSK, Procter & Gamble, Sanofi, Kimberly-Clark, and Jumia’s shutdown of Jumia Food have also left the market.
Nigeria’s inflation rate jumped from 24% to 34.19% in 18 months, mainly due to higher food and transportation costs. The Naira, Nigeria’s currency, lost over 100% of its value in the past year, going from N462/$ to N1,500/USD.
