Shoprite Leaves Malawi And Ghana As Retail Giant Refocuses On SA Market

Africa’s largest grocery retailer, Shoprite, is set to close its Malawi operations after a 25-year presence in the country.

The company confirmed that it will also be exiting the Ghanaian market as part of a wider plan to withdraw from several African countries, including Nigeria, Uganda, and the Democratic Republic of Congo, and strengthen its focus on its home market, South Africa.

The retailer’s decision follows a series of economic challenges across these regions, including US dollar–denominated rents, soaring inflation, weak local currencies, and high import costs.

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In June, Shoprite reached an agreement to sell five of its stores in Malawi to Karson, with several conditions attached. Employees wishing to remain with the new owner will be retained, while those opting to leave will receive proper compensation.

Additionally, Karson must submit quarterly reports for two years to confirm compliance with the terms. The stores will continue operating under the new name Shopwise Trading Limited, maintaining a grocery retail focus.

Ghana Exit Sees Shoprite Sell Warehouse and Seven Stores

In Ghana, the retailer has finalised the sale of a warehouse and seven of its stores. Despite scaling back its African footprint, Shoprite Group reported record-breaking sales, surpassing R250 billion this year.

The company recorded a R20.6 billion increase in sales, marking a strong performance in rand terms.

CEO Pieter Engelbrecht shared that, within its Supermarkets RSA segment, Shoprite and Usave achieved a 5.9% turnover increase, translating to R6.5 billion in growth from a base of R110.1 billion.

“Our customers remain pressured on a number of fronts, and disposable incomes are stretched. It is for this reason the teams pulled together to keep sell inflation at Shoprite (on a volume weighted basis) below 2%,” Engelbrecht explained.

He added that while promotional activity was higher than in 2024, the company strengthened its operational discipline, allowing it to improve gross margins year-on-year.

Sixty60 Sees Impressive Growth Amid Market Shift

Engelbrecht also highlighted the rapid growth of Shoprite’s on-demand e-commerce platform, Sixty60, which saw a 47.7% sales increase, reaching R18.9 billion this year.

“Success measures outside of its growth and sales quantum include its incredible brand advocacy underscored by the Sixty60 customer experience, evidenced by its 94.0% on-time deliveries and 96.8% order fulfilment,” he said.

Shoprite’s strategic refocus reflects a shift towards strengthening local operations while leveraging digital platforms to meet changing consumer needs in its strongest market—South Africa.

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