Shoprite Exits Malawi After 25 Years of Operations
South African retail giant Shoprite is pulling out of the Malawian market after 25 years, signaling the end of an era for the country’s grocery retail sector. The company confirmed it has entered into an agreement to sell all five of its remaining stores in Malawi to Karson Investment Trust, pending regulatory approvals.
In a trading update for the 52 weeks ending 29 June 2025, Shoprite announced that it had signed a sale of assets agreement on 6 June 2025. The deal includes the transfer of the assets used in its operations, with the transaction subject to conditions expected to be finalized by October. These include approval from Malawi’s Competition and Fair Trading Commission (CFTC) and the Reserve Bank of Malawi.
If approved, the new operator, Karson Investment Trust, will run the outlets under a new brand, Shopwise Trading Limited, continuing to offer groceries and general merchandise to Malawian consumers.
This marks another strategic withdrawal for Shoprite, which has exited several other African markets including Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo. In South Africa, it also sold off its furniture division to Pepkor, though continues to operate those brands in Angola and Mozambique.
Shoprite entered Malawi in 2000, aiming to expand its regional footprint. However, the company has faced persistent financial challenges in the country. In 2022, Shoprite closed one of its stores after three consecutive years of losses, sparking fears of a full exit.
At the time, Malawi’s Labour Minister Vera Kamtukule told Parliament that Shoprite had no plans to leave, stating the closure was limited to one underperforming branch. That closure resulted in 25 job losses.
The decision to exit Malawi is seen as part of Shoprite’s ongoing strategy to focus on high-performing markets. The group also confirmed that it has accepted a binding offer to sell its operations in Ghana, which include seven trading stores and a warehouse. The sale has been classified as a discontinued operation in its latest financial results.
Meanwhile, the CFTC has invited public comments on the Shoprite-Karson transaction. Stakeholders are encouraged to submit feedback on the potential effects of the deal on market competition, consumer welfare, and economic growth in the retail sector.
Shoprite remains South Africa’s largest retailer by market capitalization, sales, profits, and customer base. However, its cautious retreat from certain African markets reflects the complex challenges of cross-border retail expansion on the continent.
Additional source: The Citizen
