Mr. Price Group is closing its business in Nigeria to concentrate on its business in South Africa.
The famous affordable clothing, sport, and home wear outfit has shut down four of its five outlets in Nigeria and it is expected to close the remaining one in few months.
This was revealed by the Chief Executive Officer of Mr. Price, Mark Blair.
Nigeria happens to be the third country exited by the company, as it had exited Australia and Poland last year. The South African company blamed the exit on challenges like supply-chain disruptions and challenges in getting funds out of Nigeria.
While talking about the exit, Mark Stirton, Chief Financial Officer of Mr. Price said: “We are really going to focus on South Africa in a more concentrated way.”
Mr. Price is one of the few companies that have exited Nigeria over the past few years. Woolworths Holdings Ltd. exited Nigeria in 2013 while Shoprite Holdings Ltd. made it known last year that it might shut down some stores in Nigeria..
The company forecasts that it might encounter some challenges with other retail companies in South Africa due to the lockdown it is only gradually coming out from.
Mr. Price had consequently been looking for ways to cut down on cost; it froze salaries of Head Office and did not declare a final dividend. Also,it announced plans to offer shares for sale in a bid to expand its operations through growth in 2019.
