Shoprite, South Africa’s largest supermarket chain, is leaving Ghana and Malawi as part of its ongoing retreat from underperforming African markets.
In Ghana, the company received a binding offer in June for its seven stores and warehouse. In Malawi, it signed a sale agreement for five stores in early June, pending regulatory approval. Should the Competition and Fair Trading Commission approve the sale, Karson Investment Trust, a financial portfolio management firm, will run the five stores as part of “Shopwise Trading Limited,” selling groceries and other merchandise at retail prices.
Shoprite entered Malawi in 2001 and Ghana in 2003, expanding during years of regional optimism. But the outlook changed. In Ghana, despite steady foot traffic, sales in modern malls—including Shoprite-anchored ones—have fallen below expectations.
Currency depreciation, high inflation, and an energy crisis eroded consumer spending and pushed up costs. In Malawi, Shoprite has faced multi-year losses. It sold one store in 2022 and struggled to meet sales targets. Trading conditions were tough, and its operation never recovered.
Shoprite has now exited seven African countries—the last being DR Congo in 2022—and now focusing squarely on its home base, South Africa. It is expanding store count, scaling delivery with Sixty60, and growing in pet, health, and outdoor retail.
Cross-border ambition has given way to risk-managed growth. For Ghanaian and Malawian grocery chains, Shoprite’s exit means less competition, but one less retail option for consumers.
