South Africa’s largest retailer, Shoprite, is shutting down its operations in Ghana and Malawi as part of a continued strategy to withdraw from underperforming African markets and strengthen its dominance at home.

Once aiming to lead Africa’s food retail sector, Shoprite expanded to 15 countries. However, its cross-border ventures struggled due to weak currencies, high inflation, import costs, and US dollar-denominated rents, which eroded profits.

In Malawi, Shoprite’s exit ends a 25-year presence. The retailer sold five stores to Karson, with regulatory approval requiring that staff benefits be honored and compliance reports submitted for two years. Karson will rename the outlets Shopwise Trading Limited, though concerns remain about job security and operational sustainability.

Similarly, in Ghana, Shoprite plans to sell seven stores and a warehouse, marking another likely departure. These moves follow earlier exits from Nigeria, Kenya, Uganda, Madagascar, and the DRC.

Despite scaling back abroad, Shoprite is thriving domestically. For the year ending June 2025, the group reported sales exceeding R250 billion, up R20.6 billion from 2024.

• Shoprite and Usave grew turnover by 5.9%, while
• Checkers, positioned as a premium yet affordable brand, saw sales surge 13.8%, contributing R11.6 billion.

Checkers’ success is driven by its FreshX store format, focusing on high-quality, fresh foods. The group opened 68 new Checkers outlets and added 225 stores overall, bringing its South African network to 2,577 supermarkets.

Shoprite plans to open another 223 stores in the coming year, reflecting a strong domestic expansion strategy even as it retreats from other African markets.

CEO Pieter Engelbrecht reaffirmed the company’s commitment to investing locally, saying:

“Our strategy to continue converting existing stores to our winning FreshX format, whilst opening stores in areas where we are underrepresented, remains one of our top priorities.”

The retailer’s focus on South Africa underscores a shift from continental ambition to sustained profitability and brand strength at home.