Case study below: Shoprite nets $10 million from sale of Uganda, Madagascar and Nigeria unitsSouth Africa’s Shoprite Holdings Ltd posted $10.27 million gain from the sale of its assets in Uganda, Madagascar and Nigeria as Africa’s largest fast-moving consumer goods retailer retreated from markets it has considered under-performing on the continent. The retailer, which is listed on the Johannesburg Stock Exchange (JSE) and cross-listed on the Namibian and Zambian Stock exchanges, revealed through its financial statements for the 53 weeks ended July 4 that its operations in Uganda and Madagascar which it had classified as “assets held for sale” yielded a combined net gain of $8.85 million, but declined to disclose the value for each transaction.On the other hand, the sale of the Nigerian subsidiary, which was completed in May 23 realised a net gain of $1.41 million after the business was sold at $35.89 million of which $29.81 million of the amount has already been received. The retailer noted that its operations outside South Africa consisting of 14 countries only contributes 20 percent of the firm’s profitability with a huge 80 percent of the earnings coming from South Africa.As a result it closed its Mauritius business in 2019 due to continued non-profitability. Uganda and Madagascar operations made net losses of $1.41 million and $540,865 respectively during the financial year ended July 4. Its Kenyan subsidiary, whose last store was closed in January, made a net profit of $676,081 during the period under review. Shoprite exited Tanzania in 2014 by selling two of its branches in Dar es Salaam and one in Arusha to the then regional retailing giant Nakumatt Holdings. It is argued that Shoprite’s business, particularly in Africa, has been disrupted by technology as some shoppers have now moved to online operations.The South African business was sold off at a loss of $8.2 million in April 2020, and a combined loss of $58,952 on disposal of plant and equipment of discontinued operations. The retailer’s operations in Mozambique were closed in September 2019, followed by the operations in Kenya and Tanzania in March 2020. In Kenya, retailing giants such as Uchumi, Nakumatt and Tuskys have collapsed leaving the market to upcoming players such as Quickmart and Naivas.TakeoverFrench franchise Carrefour is set to take over the stores of Shoprite Checkers when the South African giant completes its exit from the Uganda market. The Carrefour franchise in Uganda is operated by the United Arab Emirates based Majid Al FuttaimGroup, which announced in a press statement that it had agreed the lease transfer of Shoprite Checkers Uganda Limited’s store locations. Answer Question below: Identify and discuss the corporate strategy that Shoprite is pursuing. Provide at least five examples/ extracts from the article to support your answer.

Case study below: Shoprite nets $10 million from sale of Uganda, Madagascar and Nigeria unitsSouth Africa’s Shoprite Holdings Ltd posted $10.27 million gain from the sale of its assets in Uganda, Madagascar and Nigeria as Africa’s largest fast-moving consumer goods retailer retreated from markets it has considered under-performing on the continent. The retailer, which is listed on the Johannesburg Stock Exchange (JSE) and cross-listed on the Namibian and Zambian Stock exchanges, revealed through its financial statements for the 53 weeks ended July 4 that its operations in Uganda and Madagascar which it had classified as “assets held for sale” yielded a combined net gain of $8.85 million, but declined to disclose the value for each transaction.On the other hand, the sale of the Nigerian subsidiary, which was completed in May 23 realised a net gain of $1.41 million after the business was sold at $35.89 million of which $29.81 million of the amount has already been received. The retailer noted that its operations outside South Africa consisting of 14 countries only contributes 20 percent of the firm’s profitability with a huge 80 percent of the earnings coming from South Africa.As a result it closed its Mauritius business in 2019 due to continued non-profitability. Uganda and Madagascar operations made net losses of $1.41 million and $540,865 respectively during the financial year ended July 4. Its Kenyan subsidiary, whose last store was closed in January, made a net profit of $676,081 during the period under review. Shoprite exited Tanzania in 2014 by selling two of its branches in Dar es Salaam and one in Arusha to the then regional retailing giant Nakumatt Holdings. It is argued that Shoprite’s business, particularly in Africa, has been disrupted by technology as some shoppers have now moved to online operations.The South African business was sold off at a loss of $8.2 million in April 2020, and a combined loss of $58,952 on disposal of plant and equipment of discontinued operations. The retailer’s operations in Mozambique were closed in September 2019, followed by the operations in Kenya and Tanzania in March 2020. In Kenya, retailing giants such as Uchumi, Nakumatt and Tuskys have collapsed leaving the market to upcoming players such as Quickmart and Naivas.TakeoverFrench franchise Carrefour is set to take over the stores of Shoprite Checkers when the South African giant completes its exit from the Uganda market. The Carrefour franchise in Uganda is operated by the United Arab Emirates based Majid Al FuttaimGroup, which announced in a press statement that it had agreed the lease transfer of Shoprite Checkers Uganda Limited’s store locations. Answer Question below: Identify and discuss the corporate strategy that Shoprite is pursuing. Provide at least five examples/ extracts from the article to support your answer.

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Shoprite nets $10 million from sale of Uganda, Madagascar and Nigeria unitsSouth Africa’s Shoprite Holdings Ltd posted $10.27 million gain from the sale of its assets in Uganda, Madagascar and Nigeria as Africa’s largest fast-moving consumer goods retailer retreated from markets it has considered under-performing on the continent. The retailer, which is listed on the Johannesburg Stock Exchange (JSE) and cross-listed on the Namibian and Zambian Stock exchanges, revealed through its financial statements for the 53 weeks ended July 4 that its operations in Uganda and Madagascar which it had classified as “assets held for sale” yielded a combined net gain of $8.85 million, but declined to disclose the value for each transaction.On the other hand, the sale of the Nigerian subsidiary, which was completed in May 23 realised a net gain of $1.41 million after the business was sold at $35.89 million of which $29.81 million of the amount has already been received. The retailer noted that its operations outside South Africa consisting of 14 countries only contributes 20 percent of the firm’s profitability with a huge 80 percent of the earnings coming from South Africa.As a result it closed its Mauritius business in 2019 due to continued non-profitability. Uganda and Madagascar operations made net losses of $1.41 million and $540,865 respectively during the financial year ended July 4. Its Kenyan subsidiary, whose last store was closed in January, made a net profit of $676,081 during the period under review. Shoprite exited Tanzania in 2014 by selling two of its branches in Dar es Salaam and one in Arusha to the then regional retailing giant Nakumatt Holdings. It is argued that Shoprite’s business, particularly in Africa, has been disrupted by technology as some shoppers have now moved to online operations.The South African business was sold off at a loss of $8.2 million in April 2020, and a combined loss of $58,952 on disposal of plant and equipment of discontinued operations. The retailer’s operations in Mozambique were closed in September 2019, followed by the operations in Kenya and Tanzania in March 2020. In Kenya, retailing giants such as Uchumi, Nakumatt and Tuskys have collapsed leaving the market to upcoming players such as Quickmart and Naivas.TakeoverFrench franchise Carrefour is set to take over the stores of Shoprite Checkers when the South African giant completes its exit from the Uganda market. The Carrefour franchise in Uganda is

operated by the United Arab Emirates based Majid Al FuttaimGroup, which announced in a press statement that it had agreed the lease transfer of Shoprite Checkers Uganda Limited’s store locations.

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Identify and discuss the corporate strategy that Shoprite is pursuing. Provide at least five examples/ extracts from the article to support your answer.

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