MASSMART (MSMJ.J) is disposing of all its general merchandise Game stores in West and East Africa to stem losses in that struggling business, chief executive Mitch Slape said on Friday, after the Walmart (WMT.N) majority-owned retailer reported a narrower half-year loss.
Like its peer Shoprite Holdings (SHPJ.J), forays into African markets including Nigeria have been marred by currency volatility and constrained consumer demand, making it difficult to operate profitably on the continent once touted as the next bright growth spot for retailers.
As part of a turnaround plan to stabilise the business, Massmart had said it will review its store portfolio outside of Southern Africa.
That review has now resulted in the disposal of 14 stores across Ghana, Nigeria, Uganda, Kenya and Tanzania.
“The performance and the complexity in running those businesses is something that frankly we needed to address. We’ve commenced a formal sales process, we’re currently in discussions
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