Shoprite exits Africa’s market with plans to expand in SA

Shoprite, South Africa’s biggest grocery retailer, is closing its stores in Ghana and Malawi as part of a long-term plan to focus on growth within South Africa.

shoprite south africa

Shoprite South Africa, the country’s largest grocery retailer, is officially closing its operations in Ghana and Malawias part of a broader plan to pull back from international markets and concentrate its resources on home soil.

The decision marks another step in Shoprite’s long-term strategy to exit several African countries where it has faced persistent financial and operational difficulties.

The company had previously withdrawn from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo.

Once celebrated for its ambition to dominate the continent’s retail market, Shoprite has now shifted focus to what it does best — serving South African customers through its Shoprite, Checkers, and Usave supermarket brands.

In a report by BusinessTech, Shoprite confirmed that its five stores in Malawi were sold earlier this year after 25 years of trading. The sale was approved by Malawi’s Competition and Fair-Trading Commission, with conditions requiring the buyer, Karson, to retain existing staff where possible and ensure fair compensation for those who chose to leave.

The new owner will operate the stores under the name “Shopwise Trading Limited.”

In Ghana, Shoprite has also agreed to sell its seven stores and one warehouse, describing the sale as “highly probable.” This means another full withdrawal from an African market is imminent.

Industry analysts say the retailer’s retreat is not sudden but the result of years of economic headwinds in several African economies. Shoprite struggled with weak local currencies, high inflation, import taxes, and rents charged in US dollars, all of which made it difficult to stay profitable outside South Africa.

While some of these countries presented growing consumer markets, the operational costs and currency risks often outweighed the benefits.

Despite its departure from these countries, Shoprite’s business in South Africa is thriving. The company’s sales surpassed R250 billion in the financial year ending 30 June 2025, representing a growth of R20.6 billion compared to the previous year.

Its Checkers division, which targets middle- and upper-income customers with a more premium offering, performed particularly well, with sales rising 13.8% (an additional R11.6 billion). The Shoprite and Usave supermarkets, which cater mainly to price-sensitive shoppers, also grew by 5.9%, adding another R6.5 billion to total revenue.

Shoprite CEO Pieter Engelbrecht said the company’s goal now is to strengthen its hold on the local market.

“Our strategy to continue the conversion of existing stores to our winning FreshX format, whilst opening stores in areas where we are underrepresented, remains one of our top priorities,” he said.

The retailer has also expanded aggressively within South Africa. In the past financial year alone, it added 225 new stores, bringing its total local network to 2,577 outlets. Across all its brands and businesses, including the recently discontinued international operations, Shoprite ended the year with 3,908 stores — a net increase of 269.

At the same time, Shoprite’s Sixty60 delivery app has become a key part of its success. The platform recorded a 47.7% increase in sales, reaching R18.9 billion, thanks to faster deliveries and improved customer satisfaction.

Shoprite’s move to focus solely on South Africa is not a retreat from growth — it is a recalibration.

By redirecting investment into local operations, logistics, and technology, the retailer is betting that the South African market offers greater stability and long-term profitability than its African ventures.

For a company once aiming to be Africa’s retail giant, Shoprite South Africa now appears determined to dominate its home market instead — and by the numbers, it is already succeeding.