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Tag: Shoprite

  • Shoprite announces exit from another African country

    Shoprite announces exit from another African country

    South Africa top retail merchant, Shoprite Holdings, has disclosed plans to sell or close its remaining two stores in Kenya by the end of the year.

    This is coming two years after entering into the retail scene of the East African country.

    The company announced this on Tuesday, citing that the Kenyan business has continued to underperform relative to the return requirements.

    “Kenya has continued to underperform relative to our return requirements,” the company said as it posted a 16.6 per cent rise in annual group earnings, adding that its decision to leave had been cemented by the economic impact of the COVID-19 pandemic.

    The decision to leave Kenya comes a month after widespread reports that Shoprite was considering selling its stake in its Nigerian subsidiary.

    The company invested in Kenya after the Kenyan retail companies Uchumi Supermarkets and Nakumatt collapsed.

    The supermarket group has been reviewing its long-term options in Africa as currency devaluations, supply problems and weak consumer spending in Angola, Nigeria and Zambia have weighed on earnings.

    Shoprite shares jumped more than 11 per cent to a five-month high as investors cheered the group earnings, post-lockdown outlook and dividend.

    According to Mr Pieter Engelbrecht, the company’s Chief Executive Officer, the firm has renegotiated 48 rental agreements as part of review which are being done by either reducing rent payments or converting them to local currency.

    The firm has also restricted capital allocations to its supermarkets outside South Africa.

    Shoprite, with more than 2,300 stores across Africa, reported record sales of 156.9 billion rands, up 6.4 per cent for the year ended June 28, with like-for-like sales up 4.4 per cent as customers spent more at its discount Usave and mid-to-upper market Checkers stores.

    Sales at its loss-making rest of Africa operations declined 1.4 per cent as the lockdown policy impacted the result.

    It stated, “complexity in managing COVID-19 regulations across multiple territories negatively impacted the second half.”

    Diluted headline earnings per share (HEPS) from continuing operations climbed to 765.8 cents against a restated 746.9 cents a year earlier, while adjusted diluted HEPS rose 16.6 per cent.

    Shoprite declared a final dividend of 227 cents per share and said it had traded ahead of expectations since the beginning of July.

  • $10m debt: Judge declines Shoprite’s application to set aside restraining order

    $10m debt: Judge declines Shoprite’s application to set aside restraining order

    A Federal High Court sitting in Lagos, Southwest Nigeria on Monday refused to hear an application filed to lift an order of injunction restraining South African retail outlet, Shoprite Checkers (PTY) Limited, from transferring its assets.

    The presiding vacation Judge, Justice Nicholas Oweibo, said that the matter was not urgent enough to be heard during the vacation period.

    Shoprite is seeking to overturn a July 14, 2020 order of injunction made by Justice Mohammed Liman of the same court jurisdiction in favour of a Nigerian Company, A.I.C. Limited.

    A.I.C. Limited, in 2018 secured a $10m judgment against Shoprite in a breach of contract suit, it obtained the order of injunction base on information that Shoprite was about to pull out of Nigeria.

    Justice Liman restrained Shoprite “from transferring, assigning, charging, disposing of its trademark, franchise and intellectual property in a manner that will alter, dissipate or remove these non-cash assets and other assets, including but not limited to trade receivables, trade payables, payment for purchase of merchandise, from within the jurisdiction of this honourable court.”

    Justice Liman also mandated the second respondent, Retail Supermarket Nigeria Limited, “to disclose its audited financial statements for the years ending 2018 and 2019 to enable the judgment creditor/applicant to determine the judgment debtor’s/respondent’s funds in its custody in order to preserve same in satisfaction of the judgment of the Court of Appeal in Appeal No: CA/L/288/2018.”

    The $10 million judgment was in 2018 entered in favour of A.I.C. Limited against Shoprite by Justice Lateef Lawal-Akapo of the Lagos State High Court in Ikeja.

    Dissatisfied, the company appealed the judgment, but the appellate court affirmed the judgment of the lower court.

    Thereafter Shoprite lodged appeal at the Supreme Court.

  • Shoprite seeks vacation of court order stopping its exit from Nigeria

    Shoprite seeks vacation of court order stopping its exit from Nigeria

    The South African retail company, Shoprite Checkers (PTY) Ltd, on Tuesday filed an application seeking to discharge a mareva injunction stopping it from transferring its asset.

    Mareva injunction is a court order freezing a debtor’s assets to prevent them being taken abroad

    On July 14, Justice Mohammed Liman of the Federal High Court, Lagos, made the mareva injunction in favour of a Nigerian firm, A.I.C. Ltd, which in 2018 secured a 10 million US Dollar judgment against Shoprite in a breach of contract lawsuit.

    Recall that A.I.C. Ltd had earlier obtained the mareva injunction against the backdrop of Shoprite’s announcement to pull out of Nigeria.

    Justice Liman, had made the injunction, restraining Shoprite “from transferring, assigning, charging, disposing of its trademark, franchise and intellectual property in a manner that will alter, dissipate or remove non-cash assets and other assets, including but not limited to trade receivables, trade payables, payment for purchase of merchandise, from within the jurisdiction of this honourable court.”

    The judge also mandated the second respondent, Retail Supermarket Nigeria Ltd, “to disclose its audited financial statements for the years ending 2018 and 2019, to enable the judgment creditor/applicant determine the judgment debtor’s/respondent’s funds in its custody in order to preserve same in satisfaction of the judgment of the Court of Appeal in Appeal No: CA/L/288/2018.”

    But on Tuesday, Shoprite’s counsel, Mrs Funke Adekoya, SAN, approached the vacation judge at the Federal High Court in Lagos, Justice Nicholas Oweibo, with an application seeking to set aside the mareva injunction.

    However, the judge said he needed to be convinced that the case was urgent enough to warrant being heard during the court’s vacation.

    He directed Shoprite counsel to file an application to that effect and adjourned until Sept. 7 for hearing.

    Recall that a 10 million US Dollar judgment was in 2018 entered in favour of A.I.C. Ltd against Shoprite by Justice Lateef Lawal-Akapo of the Lagos State High Court in Ikeja.

    Displeased with the judgment, Shoprite had gone on appeal but it equally lost at the Court of Appeal and has now gone to the Supreme Court.

  • Court halts transfer, sale of Shoprite’s assets over pending $10m judgement

    Court halts transfer, sale of Shoprite’s assets over pending $10m judgement

    The Federal High Court in Lagos has made an order stopping Shoprite Checkers (PTY) Limited from disposing of or transferring its assets out of jurisdiction or to a third party over a $10 million judgment sum.

    TheNewsGuru.com, TNG reports that Shoprite had two weeks ago announced its intention to exit Nigeria.

    However Justice Mohammed Liman issued an order in favour of a Nigerian company, A.I.C. Limited, which in 2018, secured a $10m judgment against Shoprite in a breach of contract suit.

    The $10m judgment sum was awarded A.I.C. Limited by Justice Lateef Lawal-Akapo of the Lagos State High Court at Ikeja.

    Dissatisfied with the judgment of the court, Shoprite went on appeal.

    The appellate court affirmed the judgment of the lower court.

    Thereafter Shoprite filed another appeal at the Supreme Court. The appeal is pending.

    On July 14, 2020, Justice Liman restrained Shoprite and its privies “from transferring, assigning, charging, disposing of its trademark, franchise and intellectual property in a manner that will alter, dissipate or remove these non-cash assets and other assets, including but not limited to trade receivables, trade payables, payment for purchase of merchandise, from within the jurisdiction of the court.”

    The judge also mandated the second respondent, Retail Supermarket Nigeria Limited, “to disclose its audited financial statements for the years ending 2018 and 2019 to enable the judgment creditor/applicant determine the judgment debtor’s/respondent’s funds in its custody in order to preserve same in satisfaction of the judgment of the Court of Appeal.

    A.I.C. Limited had in 2012 sued Shoprite Checkers (PTY) Limited; and Retail Supermarket Nigeria Limited for alleged breach of contract.

    The Nigerian company averred that it invited the South African retail supermarket operators to Nigeria and opened their eyes to business opportunities in the country, with a view that they would go into a joint venture.

    The Nigerian company alleged further that after talks had reached an advanced stage and it had incorporated A.I.C.-Shoprite Nigeria Ltd. in the hope of a joint venture, Shoprite abandoned the agreement and went behind its back to set up its outfit in 2005

    Though Shoprite contended that it had no contract with the Nigerian firm, both the high court and the Court of Appeal said the series of correspondents between the parties confirmed that A.I.C Limited and Shoprite agreed to a joint venture.

    Upholding the high court judgment, the Court of Appeal declared that, “There is evidence in the record that the 1st appellant allowed the respondent to search for a suitable site for the partnership project and to apply for a lease of land for the partnership project.

    “These involved time, energy and money. The lower court held that the conduct of the parties demonstrated intention to enter into a legal relation in respect of the partnership project. I agree.”

  • Meet Nigerian, Tayo Amusan who’s leading take over bid of Shoprite

    Meet Nigerian, Tayo Amusan who’s leading take over bid of Shoprite

    Following the announcement made by South Africa retail giant, Shoprite, about the commencement of a formal process to discontinue its operation in Nigeria, Persianas Nigeria Limited, a property development company, owned by a Nigerian Tayo Amusan, who is said to be the most favoured among others who are leading the talks on the acquisition bid of the retail company.

    Shoprite Holdings Limited made the announcement on Monday in its operational and voluntary trading update for the year ended on June 28, 2020.

    Who is Tayo Amusan?

    With more than 25 years of experience doing business in Nigeria, mainly in the real estate sector, Tayo Amusa founded Persianas and has been instrumental in its growth and continued success since then.

    He serves on the board of several Nigerian companies including African Paints Nigeria Limited and is also the Chairman of Resourcery Limited.

    Amusan was able to change the face of the several businesses he leads, particularly those in the retail and commercial sectors, the goal of his company, Persianas is to deliver sustainable, positive impacts. The major project to date is the world-class ‘The Palms’ shopping mall, which is rated to be the biggest such property in Nigeria, if not West Africa.

    Amusan’s Persianas built the first mall of international standards in Nigeria and currently own five spread across Nigeria in Lagos, Ibadan, Kwara, Enugu and soon to be launched Abuja. The company’s retail arm has successfully launched franchises such as Hugo Boss and Lacoste.

    Tayo Amusan is one of the business persons who made it big during the regime of former Military President, Ibrahim Badamosi Babangida.

    “Why Shoprite wants to discontinue its operations in Nigeria?

    The multi-national retail group, which announced a 6.4 per cent increase (R156.9billion) in total sales of merchandise for the outgoing year despite the challenges posed by the COVID-19 pandemic, announced that it took the decision to discontinue its Nigeria operation “following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria.”

    “The Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited. As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” the report stated.

    While the company’s total sales of merchandise may be on the rise, it is struggling outside South Africa. According to the report, the non-South Africa supermarket operation of the company, excluding Nigeria, contributed a paltry 11.6 per cent to the group sales. Its non-South Africa sales also declined by 1.4 per cent in the year under review. The company blamed this decline on the lockdown announced in several African countries due to the coronavirus pandemic.

    “Second half constant currency sales growth of 6.3% was significantly impacted by lockdown regulations across the 14 African countries in which we trade. Lockdown restrictions pertaining to store closures; social distancing; transport restrictions; the movement of people; trading hours; workforce limitations and trade in alcohol impacted various regions to differing degrees at different times.”

    Shoprite opened its first store in Nigeria in December 2005 and now has a total of 26 stores across eight states in the country including Federal Capital Territory, Abuja. The company also claim to have employed more than 2,000 people in Nigeria, of which 99 per cent of them are Nigerians.

    Shoprite also claimed to have built more relationships with over 300 Nigeria suppliers, small businesses and farmers.

  • EXCLUSIVE: Real reasons Shoprite is calling it quits in Nigeria after 15 years

    EXCLUSIVE: Real reasons Shoprite is calling it quits in Nigeria after 15 years

    …as local investors queue up

    …the court judgement that nailed Shoprite’s impending exit from Nigeria

    …’We are expanding and going fully Nigerian’

    …Nigerians react

    More information has emerged on why South African supermarket chain, Shoprite Holdings Limited maybe calling it quits in Nigeria after dominating the retail sector for 15 years.

    Recall that the South African retailer (operating in Nigeria as Retail Supermarkets Nigeria Limited) had in a statement released on Monday, revealed it has started a formal process to consider the potential sale of all or a majority stake in its supermarkets in Nigeria.

    In the statement, Shoprite said the results for the year do not reflect any of their operations in Nigeria as it will be classified as a discontinued operation.

    “Following approaches from various potential investors, and in line with our re-evaluation of the Group’s operating model in Nigeria, the Board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited, the statement reads.

    “As such, Retail Supermarkets Nigeria Limited may be classified as a discontinued operation when Shoprite reports its results for the year. Any further updates will be provided to the market at the appropriate time,” it added.

    International supermarkets (excluding Nigeria) contributed 11.6% to group sales, and reported 1.4% decline in sales from 2018. South African operations contributed 78% of overall sales and saw 8.7% rise for the year.

    As a result of lockdown, customer visits declined 7.4% but the average basket spend increased by 18.4%.

    Court awards $10m damages against Shoprite

    Meanwhile, investigations by TheNewsGuru.com TNG revealed that aside the surface excuse of low Return on Investments (ROI) as its major reason for wanting to exit Nigeria, one major (hidden) reason the South African conglomerate maybe divesting from its biggest African market (Nigeria) might be as a result of a recent Appeal Court ruling which affirmed the judgment of a Lagos High Court that awarded $10 million damages against Shoprite Checkers (PTY) Limited in a suit filed by AIC Limited that the retail giant breached an agreement to set up its Nigerian arm.

    In an unanimous judgment delivered on May 21, the court’s three-man panel affirmed the award against Shoprite Group, thus upholding the decision of the lower court that Shoprite Group breached contract in its dealing with AIC.

    Before the appeal was instituted, the trial court presided over by Justice Lateef Lawal-Akapo had awarded $10 million damages against the South African retail giant and its Nigerian subsidiary for a breach of contract

    Apart from the $10million award, the court had directed the South African retail giant to pay 10 percent per annum on the damages with effect from the date of judgment until final liquidation of the entire sum.

    Dissatisfied with the judgment of the trial court, Shoprite and its Nigerian subsidiary jointly filed a notice of appeal with several grounds, asking the appellate court to quash the decision of the lower court.

    On its part, AIC filed a cross appeal, demanding 50 percent of $92.3million as loss of profit it suffered due to the incorporation of Retail Supermarkets Limited, which it contended amounted to the breach of the agreement for the period of 2005 to 2009.

    In its decision, the three-man panel, comprising Justice Joseph Ikyegh, Justice Tijjani Abubakar and Justice Ugochukwu Ogakwu, threw out the appeal of Shoprite Group having established it breached agreement it entered with AIC to jointly set up the Nigerian subsidiary.

    Ikyegh, who delivered the lead judgment, ruled: “I agree with the appellants that since the court below did not find Retail Supermarket liable, the award of damages and costs against it cannot stand. The court below was therefore wrong to have awarded damages against Retail Supermarket.”

    The judge declared that he would “allow the appeal in part on this issue and set aside the award of damages and costs against Retail Supermarket; while the appeal of Shoprite Checkers is dismissed for lacking in merit and the decision of the court below as it affects Shoprite is hereby affirmed.

    “The trial court held in its judgment that there was a subsisting contract by conduct between the respondent and Shoprite with respect to the joint venture, which the latter had breached upon which it awarded $10 million damages and post-judgment interest thereon in favour of the respondent against the appellants,” he declared.

    We are expanding and going fully Nigerian – Retail Supermarkets Nigeria Limited

    Meanwhile, Retail Supermarkets Nigeria Limited has formally informed its staff members of its expansion plans and also making the company fully indigenous. This was revealed in an internal memo signed and released to all staff members by the General Manager, Carl Erickson on Friday, July 31, 2020.

    The memo sighted by TNG reads in part: “The expansion of the retail business in Nigeria to a greater consumer market should remain everybody’s shared vision. It has, however, become apparent that the best manner in which to do this is by engaging Nigerian investors who share in this vision. In so doing we will be creating a truly Nigerian business run and owned by Nigerians for the Nigerian market.”

    AIC Limited tipped as major investor in Retail Supermarkets Nigeria Limited

    Unconfirmed reports by TNG has it that AIC Limited promoted by Chief Harry Akande maybe the major investor in Retail Supermarkets Nigeria Limited. While both Retail Supermarkets Nigeria Limited and the parent company, Shoprite are yet to make this public, however the $10m damages in favour of AIC Limited is a major pointer.

    An insider source who spoke on condition of anonymity told TNG: “Yes Shoprite is about divesting from Nigeria. They have been on this for a while but decided to keep it in the wraps till maturity. However, while divesting from here they have secured local investors. The local investor is likely to be AIC Limited.”

    Nigerians react

    Nigerians have taken to social media to react to the development. According to some, while this may open up opportunities for local investors in that sector, it is a bad pointer to what Nigeria has become as an investment destination.

    https://twitter.com/Mazigburugburu1/status/1290214567985864705?s=20

  • Retail giant, Shoprite announces decision to leave Nigeria

    Retail giant, Shoprite announces decision to leave Nigeria

    Retail giant Shoprite has declared it is leaving Nigeria 15 years after it began operation in Africa’s most populous country.

     

    In a statement on Monday, the Cape Town-based retailer said it has begun a formal process to consider the potential sale of all or a majority stake in its supermarkets in Nigeria.

     

     

     

    The company said the results for the year do not reflect any of their operations is Nigeria as it will be classified as discontinued operation.

     

    “Following approaches from various potential investors, and in line with our re-evaluation of the group’s operating model in Nigeria, the board has decided to initiate a formal process to consider the potential sale of all, or a majority stake, in Retail Supermarkets Nigeria Limited, a subsidiary of Shoprite International Limited. As such, Retail Supermarkets Nigeria Limited may be classified a discontinued operation when Shoprite reports its result for the year,” the statement read.

     

     

     

    TheNewsGuru reports that the International supermarket (excluding Nigeria) contributed 11.6 per cent to group sales, and reported 1.4 per cent decline in sales from 2018.

     

    South African operations contributed 78 per cent of overall sales and saw 8.7 per cent rise for the year.

     

     

     

    Due to the coronavirus-induced lockdown, customer visits declined 7.4 per cent but the average basket spend increased by 18.4 per cent.

     

     

  • Man docked for allegedly stealing 2 boxers from ShopRite

    Man docked for allegedly stealing 2 boxers from ShopRite

    A 32-year-old man, Olayinka Adeyemi, who allegedly stole two male boxers’ valued N1,500 from the Alausa branch of ShopRite Supermarkets, on Friday appeared at an Ikeja Chief Magistrates’ Court.

     

    The defendant, also a cleaner, of No.12, Unity Road, Aboru near Ipaja, Lagos State , is being tried for conspiracy, stealing and unlawful possession of live ammunition.

     

    He, however, pleaded not guilty to the charges.

     

    The prosecutor, Sgt. Felicia Okwori, told the court that the offences were committed on Oct. 19, 2019 at the Alausa branch of ShopRite Supermarkets.

     

    Okwori alleged that the defendant pretended as if he wanted to buy some items.

     

    He said that the defendant in the process stole two male boxers valued N1,500 property of Alausa branch of ShopRite Supermarkets.

     

    The prosecutor also alleged that the defendant put the stolen boxers in his pocket but luck ran out of him as his action was captured by the CCTV camera installed there.

     

    “When he was being searched, a riffle with live ammunition was found in his pocket.

     

    “Also, the stolen item was recovered from him as well,” she said.

     

    The prosecutor said that the offences contravened Sections 287, 330 and 411 of the Criminal Law of Lagos State, 2015.

     

    The chief magistrate, Mrs G.O. Anifowose, admitted the defendant to bail in the sum of N6, 000 with two sureties in like sum.

     

    Anifowose adjourned the case until Jan. 29 for mention.

  • Xenophobia: Calm returns to Shoprite mall Festac

    Xenophobia: Calm returns to Shoprite mall Festac

    Calm appeared to return to Shoprite Mall in Festac following five days of business inactivity in the shopping mall as a result of reprisal attacks foiled by operatives of Nigerian Police Force last Wednesday.

     

    Our correspondent who visited the mall observed that many of the outlets opened for business.

    The South African owned PEP store inside the mall also opened for business, with customers engaging in shopping.

     

    In the same vein, our reporter observed that though customers can be seen buying things in Shoprite, patronage has declined. Only a few persons were seen engaging in commercial activities.

    A peek at the popular Silverbird Cinema which brim with activities, is a shadow of itself as the workers had no one to sell movie tickets to.

    Despite the snail paced business activities in the mall, the major entrance of the business hub is still being locked.

    The security operatives stationed in the mall tell customers to make use of the second entrance where Festac residents mostly use.

     

     

     

     

  • DSTV, Shoprite resume business

    DSTV, Shoprite resume business

    Business activities have resumed at various firms owned by South African nationals in Lagos. Our correspondents who went to Lekki, Surulere, observed that many of the outlets opened for business.

    At the Shoprite centre in Lekki, It was observed that business activities went on unhindered as it did, before the reprisal attacks.

    PEP at Ogba is back with customers engaging in shopping.

    At Bode Thomas in Surulere, the DSTV office was also open for business; a staff also confirmed they resumed work nationwide on Sunday.

    He noted that some branches reopened on Saturday, but stressed that by Sunday morning all branches had reopened.

    Although the office was looking well set and activities going on smoothly, the workers told our correspondent that thugs last week went away with some television sets and damaged some valuables.

    “Those hoodlums entered, scattered the whole place, damaged our air conditioner outside, forcefully removed one of the television on the slab and smashed it on the floor. We all ran for our lives. The police later came and chased them away.

    “We are back now, activities have commenced, you are safe here,” he said.

    Our reporter saw that the PEP shop and the two MTN offices on Bode Thomas Road were not open. The hoodlums ransacked the place and damaged things in the shops.

    At Shoprite in Surulere, activities have reopened, but our reporter observed that some shops were still locked.