Shoprite, South Africa’s biggest grocery retailer, is officially drawing the curtain on its operations in Ghana and Malawi. The decision marks another chapter in the company’s long retreat from several African markets as it sharpens its focus on its thriving home base.
Once envisioned as the face of modern retail across the continent, Shoprite’s African expansion was nothing short of ambitious. With stores in over 15 countries at its peak, the group sought to outpace competitors like Pick n Pay and Walmart-owned Massmart to dominate the region’s grocery landscape. But over time, that vision ran into the realities of volatile economies, fluctuating exchange rates, and operating costs that simply refused to align.
Pulling Out After 25 Years In Malawi
After 25 years of trading in Malawi, Shoprite has officially sold its five stores. The deal, finalized in June and later approved by the country’s Competition and Fair-Trading Commission, came with a few strings attached. The new owner, Karson, must retain workers who wish to stay, fairly compensate those who don’t, and submit quarterly reports for the next two years to show compliance.
The stores, now rebranded as Shopwise Trading Limited, will continue to sell groceries. However, some analysts are skeptical about whether Karson can maintain the operational scale, job security, and brand trust that Shoprite built over the decades. Malawi’s retail industry, already under pressure from a weakened economy and chronic foreign exchange shortages, will be closely watching how the transition unfolds.
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Ghana’s Exit Also Underway
In Ghana, Shoprite is in the final stages of exiting the market, with plans to sell seven stores and one warehouse. The retailer described the deal as “highly probable,” signaling that a full departure is imminent.
This follows earlier withdrawals from Nigeria, Kenya, Uganda, Madagascar, and the Democratic Republic of Congo — countries once seen as crucial to Shoprite’s pan-African retail dream. The retailer has since pivoted from continental expansion to consolidation, channeling its investment and energy back into South Africa.
South Africa’s Market Thrives
While closing stores abroad, Shoprite’s domestic story tells a very different tale. The retailer’s local business is booming, with revenue surging past R250 billion for the financial year ending June 2025 — up by R20.6 billion from the previous year.
Its core supermarket brands, including Shoprite and Usave, grew turnover by 5.9%, adding R6.5 billion to total sales. The real star of the show, however, has been Checkers, the group’s premium but affordable supermarket chain, which grew sales by an impressive 13.8%, or R11.6 billion.
CEO Pieter Engelbrecht credited the FreshX store format — which emphasizes fresh produce, bakery items, and upgraded store experiences — for the chain’s success. “Our strategy to continue the conversion of existing stores to our winning FreshX format, whilst opening stores in areas where we are underrepresented, remains one of our top priorities,” he said in September.
A Refocused Future
During the last fiscal year, Shoprite added a net 225 new stores across South Africa, pushing its supermarket total to 2,577. With Checkers expanding rapidly — including 68 new outlets and 36 LiquorShop additions — the group’s total store network rose to 3,908, even after the sale of its furniture business and exits from Ghana and Malawi.
The company’s repositioning reflects a broader industry trend: African retailers scaling back regional ambitions to strengthen their domestic foundations amid economic turbulence across the continent.
For Shoprite, that shift seems to be paying off. While its footprint in Africa narrows, its hold on South Africa’s retail scene grows stronger than ever — proving that sometimes, scaling back is a strategy all on its own.
