Pick n Pay Bids Farewell to Nigeria After Four Years Amid Restructuring Plans

South African grocery giant Pick n Pay has announced its decision to exit the Nigerian market after less than five years of operation.

This move is part of a broader restructuring strategy aimed at improving the company's financial performance outside its home market.

The retailer will sell its 51% stake in a joint venture, marking another instance of multinational companies withdrawing from Nigeria due to profitability challenges.

Pick n Pay entered Nigeria in 2018 through a partnership with A.G. Leventis (Nigeria), opening its first store in the upscale Victoria Island area of Lagos.

However, the company has struggled financially, reporting significant trading losses in its core supermarket operations and facing rising borrowing costs.

Despite these setbacks, Pick n Pay has seen positive results in its clothing and online sectors, as well as improvements in its company-owned supermarkets.

CEO Sean Summers expressed optimism about the company's future, stating that they aim to reduce trading losses by up to 50% for the full year. Meanwhile, Pick n Pay's discount division, Boxer, continues to thrive, with a 16% increase in trading profit.

The company plans to list Boxer on the Johannesburg Stock Exchange by the end of the year, potentially raising up to 8 billion rand ($452 million) in what could be the continent's largest offering this year.