Pick ‘n Pay, the South African retail giant, has announced its decision to exit the Nigerian market as part of a broader restructuring strategy beyond its home territory. CEO Sean Summers made this statement on Monday, highlighting the ongoing challenges faced by multinationals operating in Nigeria.
Background on Nigerian Operations
Pick ‘n Pay entered Nigeria less than five years ago through a partnership with A.G. Leventis (Nigeria). However, its exit adds to a troubling trend of multinational companies withdrawing from the Nigerian market.
This development follows similar moves by other retailers, such as Shoprite, which closed its Abuja store on June 24 after assessing its financial performance amid the current business climate. Notably, Shoprite had previously shut down its Kano store in January 2024.
Broader Industry Trends
The retail sector is not the only one experiencing difficulties; Jumia, a prominent e-commerce platform, also announced the closure of its food delivery service, Jumia Food, in Nigeria in December 2023. Jumia cited unfavorable market conditions as the reason for this decision, which reflects a broader trend of multinational corporations reassessing their operations in the country.
Other notable exits include GlaxoSmithKline (GSK) Consumer Nigeria Plc, Procter & Gamble, Sanofi, and Kimberly-Clark, all of which have left Nigeria due to the challenging business environment.
The exit of Pick ‘n Pay and other multinationals signifies a worrying trend for the Nigerian economy, raising concerns about the country’s attractiveness to foreign investors. As these companies reevaluate their strategies, the impact on local employment and economic growth remains to be seen.