Shoprite Shuts Doors in Ghana and Malawi, but Doubles Down at Home

From continental dreams to local focus

For decades, Shoprite was more than just South Africa’s biggest grocer, it was a symbol of South African ambition across Africa. At its peak, the retailer planted its flag in about 15 countries, determined to become the continent’s supermarket king. But those dreams have quietly been scaled back.

The company has now confirmed it is exiting Ghana and Malawi, following earlier withdrawals from Nigeria, Kenya, Uganda, Madagascar, and the DRC. What was once a bold expansion strategy has turned into a cautious retreat.

Why Shoprite couldn’t make it work abroad

Running supermarkets outside South Africa proved far more complicated than Shoprite expected. Countries like Ghana and Malawi faced economic instability, weak currencies, and inflationary pressures. Import duties were high, and in some cases, landlords demanded rent in US dollars. For a retailer whose model relies on affordable goods, these conditions made long-term profitability nearly impossible.

In Malawi, Shoprite’s departure ends a 25-year chapter. Earlier this year, the retailer sold its five stores to local company Karson. The deal came with strict conditions from the country’s Competition and Fair-Trading Commission: staff must be retained if they choose to stay, benefits must be properly paid out, and Karson must report back every three months for two years. The stores will be rebranded as Shopwise Trading Limited.

Public reaction in Malawi has been mixed. While some consumers worry about losing a trusted brand, others point out that Shoprite had become expensive in recent years compared to informal traders. Economists note that the closure is a blow to Malawi’s already fragile retail industry, which contributes heavily to the economy but has struggled due to chronic foreign currency shortages.

In Ghana, Shoprite is also in the process of offloading seven stores and a warehouse, with the group calling the sale “highly probable.”

The home advantage: South Africa booms

While Shoprite trims back abroad, the story at home is entirely different. South Africa has become the company’s stronghold, and the numbers tell the story.

For the year ending June 2025, Shoprite recorded sales of over R250 billion, up R20.6 billion from the previous year. Its core supermarket chains, Shoprite and Usave, grew turnover by nearly 6%, while Checkers surged by almost 14%, adding R11.6 billion in revenue.

Checkers’ “FreshX” format – which prioritises fresh produce and premium but affordable goods – has been a game-changer. The chain opened 68 new outlets this past year, including 36 LiquorShop stores. It now boasts 350 supermarkets, with 40 of them being large-format Hypers.

CEO Pieter Engelbrecht has been clear: the future lies in refreshing existing stores and moving into underserved areas. “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.

Across South Africa, Shoprite added 225 net new stores, bringing its total to 2,577. Combined with other formats, its overall network now sits at 3,908 outlets, larger than ever, despite the international pullback.

A tale of two strategies

Shoprite’s story reflects the broader challenges of African retail. Local realities – from currency volatility to import costs, can unravel even the most ambitious expansion plans. In South Africa, however, Shoprite has leveraged its scale, logistics, and understanding of local shoppers to cement dominance.

While the Shoprite name fades from shelves in Ghana and Malawi, back home it’s busier than ever. For South African consumers, that means more stores, fresher food, and stronger competition in the supermarket aisle. For the rest of the continent, it’s a reminder that big retail ambitions can stumble when economic realities hit harder than forecasts.

{Source: BusinessTech}

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