South African retail giant Pick n Pay (PIKJ.J) has announced its decision to leave the Nigerian market by selling its 51% stake in a joint venture, as part of a broader restructuring of its international operations.
CEO Sean Summers stated on Monday, October 28, that this exit aligns with the company’s focus on streamlining its international business. The move follows increasing financial challenges for Pick n Pay, which recently reported a significant half-year loss due to rising operational and borrowing expenses.
Pick n Pay entered the Nigerian market less than five years ago in partnership with A.G. Leventis and currently operates two stores, including one in Lagos’ Victoria Island. This exit adds to the trend of multinational companies pulling out of Nigeria due to profitability challenges.
In its financial report released Monday, 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, up from a loss of 837.2 million rand for the same period last year. The company cited a 9.1% increase in trading losses, largely due to reduced profit margins in its main supermarket sector.
Despite these difficulties, Pick n Pay highlighted growth in its online and clothing divisions and improved results in its company-owned supermarkets.
CEO Summers, who is leading the company’s restructuring, expressed “quiet confidence” in meeting the goal of reducing trading losses for Pick n Pay by 50% by the end of the year.
