SA retailers bank on home market at just the wrong time

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SA consumer spending is shrinking and unemployment is at a record high, but many retailers are pulling out of the rest of Africa

After a losing bet on the potential of economies across the African continent, SA retailers are in retreat to their home market — and their timing could hardly be worse.At the same time, foreign rivals, possibly helped in 2021 by the commencement of the African Continental Free Trade Area Agreement , could find profits in the very markets SA players have had to abandon.

Shoprite announced its exit from Kenya in September after failing to secure the leases needed to fulfil its strategy there. “We took the decision to cut our losses,” Shoprite CEO Pieter Engelbrecht said. The strategy of Shoprite, for example, is to branch out into mobile financial services via a new partnership with OUTsurance, offering funeral policies and even pet insurance, with plans to roll out more products, Engelbrecht said.

 

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