South African retail giant Pick n Pay has confirmed its departure from Nigeria, marking the end of its short-lived venture in the country’s grocery sector.Â
The decision comes as Pick n Pay divests its 51 percent share in a joint operation with Nigerian partner A.G. Leventis, a move believed to align with its strategy to concentrate on core markets.
Pick n Pay, which entered Nigeria in 2021 after a partnership with A.G. Leventis began in 2016, had aimed to tap into the vast Nigerian consumer market through neighborhood-focused outlets.
This approach stood out as it differed from the large, central shopping center locations favored by other South African retailers.
However, economic uncertainties, currency instability, and challenging regulatory hurdles appear to have stifled the retailer’s growth potential.
Nigeria’s demanding business environment has prompted other multinationals to re-evaluate their positions as well.
Over recent years, companies in diverse sectors have either reduced operations or exited Nigeria altogether, with firms like Guinness, GlaxoSmithKline, and Woolworths among those stepping back due to rising costs and other operational challenges.
