South African grocery giant Pick n Pay (PIKJ.J) has announced its decision to exit Nigeria by selling its 51% stake in a joint venture, marking a strategic retreat from the Nigerian market as part of its broader restructuring efforts outside South Africa.
CEO Sean Summers revealed on Monday, October 28, that this exit aligns with the company’s recent initiatives to streamline its international operations.
The decision comes amid increasing financial pressures, with Pick n Pay reporting a significant half-year loss due to high operational and borrowing costs.
Having entered Nigeria less than five years ago through a partnership with A.G. Leventis, Pick n Pay currently operates two stores, including one in the well-known Lagos district of Victoria Island.
This withdrawal is part of a growing trend of multinational companies exiting Nigeria, where many foreign businesses face challenges in achieving profitability.
In its financial report released on October 28, Pick n Pay disclosed a pre-tax loss of 1.1 billion rand ($62 million) for the 26-week period ending August 25, compared to a loss of 837.2 million rand during the same period last year.
The company attributed a 9.1% increase in trading losses to declining profit margins in its core supermarket operations.
Despite these challenges, Pick n Pay noted “solid momentum” in its online and clothing divisions, as well as improved performance in its company-owned supermarkets.
CEO Summers, who is leading the turnaround efforts, expressed “quiet confidence” in achieving a 50% reduction in trading losses for the business by the end of the year.
