Massmart, a South African based retail giant which operates the Game stores across Africa has announced it’s plans of exiting the Ugandan market.
The company will closing all it’s shops in East and West Africa to concentrate on it’s outlets in South Africa.
Massmart is looking to receive at least $93.9M in a space of five months from it’s 14 stores across Tanzania, Uganda, Ghana, Nigeria and Kenya.
In Uganda, the company has only one outlet and is seeking for a buyer in a space of 6 months.
The company’s CEO Mitch Slape revealed that the company also seeks to reduce it’s portfolio in East and West Africa.
“We are completing the relay of 64 Game Stores within six months since the inception of the programme in February 2021.” Mr Slape said.
He also said that there will be sale of food stores and carry stores for about $93.9M in five months and this is expected to deliver an annual profit before interest and tax improvement of an estimated $51.8M per annum.
The company is the 3rd largest distributor of consumables.
It’s also one of the biggest retailers of home equipment, supplies, basic foods, liquor and general merchandise.
The announcement came shortly after ShopRite another South African retail outlet announced that it was exiting the Uganda market after 21 years and exited Madagascar too.
All these have been attributed to COVID 19 pandemic which has ravaged economies globally.
However internal mismanagement has also been faulted over the decline of retail businesses.