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Shoprite CEO Gives Insight On Plans To Exit Nigeria in 2021

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South Africa-owned retail store, Shoprite Holdings Limited, has announced that the sale of its Nigerian outlets was being concluded.

The company said it would shut down operations in the country by disposing all its 100 percent equity stake in its Nigerian retail supermarkets.

In its latest financial report for December 2020 operations obtained from the company’s website on Tuesday, Shoprite stated that the company was awaiting approval from the Federal Competition and Consumer Protection Commission after filing for approval with the commission.

According to the company, the management expects the transaction to be approved by the end of the 2021 financial year.

Shoprite added that the management was in the process of concluding a franchise agreement for the Shoprite brand to remain in Nigeria as well as an administration and services agreement to provide support to the new shareholders with operating the outlets.

The Chief Executive Officer, Pieter Engelbrecht said, “We are at the approval stage in terms of the sale of our Nigeria supermarket operation.

“From here, our capital allocated to the region remains at a minimum and we continue to manage costs as best as we can.”

“Statement of comprehensive income reflects profit from discontinued operations separately; assets and liabilities relating to the Nigeria operations disclosed as held for sale,” the report stated.

The company had in August last year in its half year 2020 financial report announced that it would gradually end its operation in Nigeria.

It said the board decided to formally exit its operations in Nigeria over unfavourable market conditions.

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Eat’N’Go Expands To East Africa, Projects 180 Stores By Year End

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In a bid to further extend its tentacles beyond the West African market, Eat’N’Go limited, one of the leading Quick Service Restaurant (QSR) operators in Nigeria and master franchisee for world-class food brands – Domino’s Pizza, Cold Stone Creamery, and Pinkberry Gourmet Frozen Yoghurt, announced its expansion into the East African market.

This development comes after the successful acquisition of the franchisee which operated Cold Stone Creamery and Domino’s Pizza in Kenya. This acquisition will see Eat’N’Go limited become the largest Domino’s pizza and Cold Stone Creamery Master Franchisee in Africa with operations in Nigeria and Kenya.

Since its entrance to Nigeria in 2012, the QSR company has grown exponentially and has continuously nurtured the drive to extend its footprint across the African market. This acquisition provides them their first foreign market expansion, making them a Pan African company with a total number of 147 outlets across Africa and a projection to reach 180 stores by end of 2021.

Group Chief Executive Officer and Managing Director Eat’N’Go Limited, Patrick McMichael said that expanding into East Africa represents a very exciting time in the growth of the organization and also a strategic investment for the firm and its stakeholders. “Over the years, we have fostered the mission to not just bring the best QSR brands to Africa, but to directly impact on Africa’s economy and we are glad we are finally on the way to making this happen. Studying the growth of the Kenyan market in the last couple of years, we are convinced that now is the time to extend our footprint into the country.”

“We are very thrilled about this expansion as this move avails us more opportunity to provide Jobs to more Africans, especially in times like this. We remain thankful to all our customers, partners, and stakeholders who have supported us this far and we are more than ready to strengthen our dedication in satisfying the needs of our customers” Patrick added.

Eat’N’Go has over the years maintained its position as the leading food franchisee in Nigeria. As it expands its presence to other parts of Africa, the organization also places a strong focus on the quality of its products and services of all its three brands. The expansion to this new region is in line with the company’s plan to reach 180 stores across Africa by the end of 2021.

The milestone achievement and development will better position the company in its contribution to Nigeria and Africa’s economy. Currently home to over 3000 staff members across Africa, the company is committed to continuously provide job and business opportunities across the continent.

Eat’N’Go launched in 2012 in Nigeria with the vision to become the premier food operator in Africa. Today, the company has over 147 stores in Nigeria and Kenya and it continues to deliver on this promise by successfully rolling out the globally recognised brands Cold Stone Creamery and Domino’s Pizza across Africa. The company continues to expand its presence in key markets by fusing company goals with new strategic development goals and is projected to reach 180 stores across Africa by end of 2021.

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Shoprite Exit: LCCI Explains Challenges Hurting Business Operations in Nigeria

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Following the recent announcement of Shoprite, a leading South Africa retail giant, that it is leaving the Nigerian market due to harsh business environment and tough business policies, Dr Muda Yusuf, the Director-General, Lagos Chamber of Commerce and Industry (LCCI) has explained some of the challenges responsible for such decision despite Nigeria’s huge population size.

Yusuf said while such decision is negative for the Nigerian economy, several factors like harsh business environment could have forced the company to make such decision. He said it also could be due to intense competitive pressure.

He said, “Shoprite is an international brand with presence in 14 African countries and about 3,000 stores. The comparative analysis of returns on investment in these countries may have informed the decision to exit the Nigeria market.

“The opportunities for retail business in Nigeria is immense. But the competition in the sector is also very intense.

“There are departmental stores in practically every neighbourhood in our urban centres around the country. There is also a strong informal sector presence in the retail sector. It is a very competitive space.”

According to the Director-General, there are also important investment climate issues that constitute downside risks to big stores like Shoprite.

He said, “These include the trade policy environment, which imposes strict restrictions on imports; the regulatory environment, which is characterised by a multitude of regulators making endless demands.

“There is also the foreign exchange policy, which has made imports and remittances difficult for foreign investors. There are challenges of infrastructure which put pressures on costs and erodes profit margins.”

The LCCI boss added, “But we need to stress that Shoprite is only divesting and selling its shares; Shoprite as a brand will remain. I am sure there are many investors who will be quite delighted to take over the shares.

“It should be noted that there are other South African firms in Nigeria doing good business. We have MTN, Multichoice, Stanbic IBTC, and Standard Chartered Bank, among others. Some of them are making more money in Nigeria than in South Africa.”

He added that some sectors are more vulnerable to the challenges of the business environment than others.

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Trophy Celebrates Leading Beer Brand Position with Unveiling of Tallest Beer Bottle

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Consumers of premium lager, Trophy were treated to a unique experience when the beer makers unveiled Nigeria’s tallest bottle in Lagos.

The epoch-making event which held at the Ikeja City Mall in Lagos had in attendance Trophy brand ambassadors: Falz and Femi Adebayo, celebrities, government officials, consumers, and other stakeholders.

Speaking at the occasion, Marketing Director, International Breweries Plc, Tolulope Adedeji revealed that the decision to erect Nigeria’s tallest beer bottle which stands at 46 feet was borne out of the desire to commemorate Trophy’s feat as the number one beer brand in Nigeria.

“We are the leading beer brand in Nigeria today, especially in the South West where we have received a lot of love from our consumers, and that’s why we resolved to honour them with this one-of-a-kind experience,” she said.

Poets, dancers, drummers and praise singers were on-hand to thrill consumers who purchased at least six cans of beer—an experience the Marketing Manager, Trophy, Bamise Oyegbami described as Waa Gbayi.

“The Numero Uno project we are experiencing today is the unveiling of the Trophy fibreglass structure which appears to be the tallest ever considering the absence of a record of its type according to the Guinness World Records. It is a follow up to the waa gbayi experience where we took the honour to the homes of our consumers by giving them a personalised experience of what it is to be an “Honourable” through activities such as praise-singing and socialising with free drinks,” Oyegbami said.

A loyal Trophy consumer, Femi Oyeleke who witnessed the event applauded Trophy lagers ingenuity with the creation and unveiling of Nigeria’s tallest beer bottle. The 38-year-old described Trophy’s commitment to doing something out of the ordinary as “refreshingly different”

Next up on the Numero Uno train is the ancient city of Ibadan where the 14 metres (45.9FT) and 3.8 metres (12.5 FT) in diameter bottle will also be unveiled.

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