By Website Writer; Shoprite, low prices you can trust, always, will be shutting down its business in Uganda, its headquartered store in South Africa has confirmed.
In its official statement, Shoprite announced that its operations in Uganda and Madagascar have been closed basing on its review process.
“In line with thr group’s non-RSA review process, our operations in Madagascar and Uganda have been classified as discontinued,” Shoprite Group announced on Monday, August 23.
This brings to an end to a franchise store that has existed in Uganda since 2000 employing over 300 Ugandans.
This implies that Shoprite would now be operating in 11 countries in Africa, including SA, where it generates almost 80% of its revenue.
In Uganda, Shoprite has been operating five supermarket stores; Village Mall, Bugolobi, Lugogo Mall, Victoria Mall in Entebbe, and Acacia Mall in Kololo.
According to Shoprite’s management, there has been serious monitoring and reviewing of its services in non-South African stores for the past year.
It’s absurd that the checks are endowed with currency devaluations, lower commodity prices, and high inflation hitting household incomes and weighed on earnings.
Shoprite’s 2020 results indicated that they had accumulated Shs 43.5 billion in losses.
This figure intensifies the Shs. 24.5 billion in losses that were registered in 2017.
Shoprite Supermarket Uganda is a franchise of South Africa’s largest grocery retailer Shoprite Holdings.
The supermarket retailer expanded aggressively in Africa, surpassing rivals such as PicknPay and Walmart’s majority-owned Massmart to become the continent’s leading food retailer with more than 2,300 corporate-owned stores in 15 countries.
Liable sources reveal that a UAE-based supermarket chain, Carrefour has already approached Shoprite group are now holding talks to acquire the stake in Uganda.
In 2020, Shoprite exit the Kenyan market just two years after its launch there.
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