Shoprite Exiting Countries Across Africa to Focus on Home Market

On 29 June 2025, South African supermarket chain Shoprite announced the decision to exit from Ghana and Malawi during its trading update. Shoprite is recalibrating its pan-African ambitions to focus on its home market in South Africa.

These divestments represent the 6th and 7th withdrawal during the past four years. Formerly, Shoprite pulled out of Nigeria, DR Congo, Uganda, Kenya and Madagascar.

In Malawi, Shoprite entered into an agreement to sell its five stores. The deal is subject to regulatory approval from the authorities, notably the Malawi Competition and Fair Trade Commission and the Reserve Bank of Malawi. In Ghana, Shoprite disclosed that it has received a binding offer for its seven stores and one distribution warehouse.

The motivations for the retreat of Shoprite is representative of challenges faced by other international retailers across Africa where exchange rate volatility and shifting import regulations can quickly erode the razor-thin margins practiced by retail grocers. In addition, leases pegged to US dollar against rising local currency inflation have also weighed down on profits. Certain countries have also imposed restrictive import regulations to favor local suppliers or producers.

As per IFRS 5 accounting standards, operations in Ghana and Malawi have now been classified as discontinued in financial statements. On the day of announcement, Shoprite’s (JSE: SHP) share price fell by 2.6% on the Johannesburg Stock Exchange.

Shoprite reported a revenue growth of 9.5% in its home market regrouped under Supermarkets RSA. This segment represents nearly 85% of the group’s total revenue.

Its Xtra Savings rewards is one of the largest loyalty program in Africa with 31 million registered customers and registering on average 2,500 swipes per minute. 85% customers at Shoprite or Checkers are registered on the Xtra Savings program. Shoprite is leveraging the data by applying #AI tools to perform big data analytics in order to optimize stock levels and promotion pricing.

Shoprite’s retreat from other African markets contrasts sharply with its robust expansion within South Africa. During the past financial year ending on 30 June 2025, Shoprite opened 43 Shoprite supermarkets, 38 Usave stores, 29 Checkers stores and 3 Checkers Hyperstores.

Furthermore, it is scaling its eCommerce business branded as Sixty60 and other retail categories such as pet supplies, healthcare and outdoor gear. The liquor division also expanded in 36 Checker and 45 Shoprite LiquorShops.