South African grocery retailer Pick n Pay has sold its 51 percent stake in a joint venture ahead of its exit from the Nigerian market.
Sean Summers, Chief Executive Officer, Pick n Pay, announced the decision as part of a broader restructuring strategy outside its home market.
Pick n Pay, which entered Nigeria less than five years ago through a partnership with A.G. Leventis, currently operates two stores in the country.
The grocery retailer braved the odds to enter the Nigerian market four years ago when other giants in the retail industry had planned to exit the country.
The exit comes amidst plans by the federal government to attract much-needed foreign investment in the country.
Profitability remains a significant challenge for many retail operators managing supermarkets, discount stores, and grocery outlets across Nigeria.
The rising cost of operations and persistent inflationary pressures are pushing numerous companies, including small and medium-sized businesses, out of the market.
