Mr. Price Group is making plans to close its Nigerian business to focus on its home market business in South Africa.
The popular affordable clothing, sport, and home wear brand has closed four out of its five Nigerian stores and expects to close the last one in the coming months.
This was disclosed by its Chief Executive Officer, Mark Blair.
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Nigeria is the third country where the company has exited, as it had left Australia and Poland just last year. The Durban-based company cited challenges like supply-chain disruptions and challenges in getting funds out of the country as reasons it has struggled to operate in Nigeria.
Mark Stirton, Chief Financial Officer of Mr. Price explained that, “We are really going to focus on South Africa in a more concentrated way.”
The company is just one out of the few companies that have left Nigeria over the past few years. Companies like Woolworths Holdings Ltd. left the country in 2013. Shoprite Holdings Ltd. had also noted just last year that it may close some stores in the country as well.
The company predicts that it might face a few challenges among other retail companies in South Africa particularly owing to the lockdown it is only gradually emerging from.
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Consequently, Mr. Price had been seeking out ways to conserve cash; it froze head-office salaries and did not declare a final dividend. It also announced plans to sell shares so as to expand its operations through growth, last year.