South African retail giant Massmart has sold its Games Discount World stores in Nigeria.
The assets were sold to the controlling shareholder of PricePointe Wholesale Club, an organisation that operates a wholesale store in Lagos.
The value of the deal is unknown, but Massmart will make it the second exit by a South African company in less than two years, following the sale of Shoprite’s Nigerian subsidiary.
Massmart has been adjusting operations across Africa amid reported interest from American retail giant Walmart in the last few months .
Massmart Chief Executive Mitch Slape also recently said that the company is reviewing its store portfolio outside of Southern Africa as part of a turnaround plan to stabilise the business. The review has now resulted in the disposal of 14 stores across Ghana, Nigeria, Uganda, Kenya and Tanzania, Itznews reports.
BusinessDay reports that Slape told investors that the performance and the complexity of running those businesses is something that needed to be addressed. He added,
“We’ve commenced a formal sales process, we’re currently in discussions with potential purchasers to take on those stores.”
ALSO READ: Walmart launches offer to buy S.African retailer Massmart
After a 12-month period of evaluation and engagement with numerous parties, the sale of the Games Discount World stores in Nigeria to PricePointe Wholesale Club was completed.
Massmart believes that the PricePointe familiarity with regional market conditions will improve overall store performance. PricePointe Wholesale Club’s is also the purchaser of the Massmart assets in the four other countries.
Source: Legit.ng