Shoprite pulls out of Malawi

MALAWI – Shoprite is in the process of leaving Malawi, with plans to sell its stores and other assets to a local firm known as Karson Investment Trust.

According to a notice published by Malawi’s Competition and Fair Trading Commission on August 1, the South African retailer has filed for permission to transfer ownership.

Shoprite, which first set up operations in Malawi in 2000, currently has five stores located in Lilongwe, Blantyre and Limbe.

The exit is not unexpected, as Malawi’s economy has been under pressure for years, with growth stagnating from 2022 to 2024.

Inflation has also been a key factor, with annual rates exceeding 20% in both 2022 and 2023, and reaching 32.2% in 2024.

This surge in prices, coupled with a drop in consumer income and limited access to foreign currency, has reduced the ability of retailers to maintain viable operations.

The economic slowdown has exposed how much Malawi relies on agriculture and how little resilience the consumer sector has in times of crisis.

Shoprite’s move follows a similar decision by Spar, which left the Malawian market in 2022.

At the time, the Spar outlets were rebranded as PTC stores after the franchise agreement was ended by new owners Tafika Holdings.

PTC, or Peoples Trading Centre, had previously been owned by Press Corporation Plc, which sold the chain following persistent financial troubles.

In its peak years, PTC ran 85 stores nationwide, but after a series of closures and a shift to a franchise model in 2016, the footprint had shrunk to just 21 outlets by 2022.

Shoprite, meanwhile, is growing elsewhere, announcing that it opened 16 new stores in South Africa last week alone.

The expansion includes two Shoprite supermarkets, three Checkers, two Usave stores, a Medirite pharmacy, a Little Me baby store, a UNIQ clothing outlet, a Checkers Outdoor, a Checkers Liquorshop and four Petshop Science branches.

The company’s departure from Malawi brings the total number of African markets it has exited to nine, including Egypt, Zimbabwe, Tanzania, Mauritius, Kenya, Madagascar, Uganda, Nigeria and now Malawi.

Despite these retreats, Shoprite continues to dominate in Southern Africa and maintains operations in Angola, Mozambique and Ghana, although these countries have also struggled with foreign exchange shortages.

There is limited public information about Karson Investment Trust, and it is unclear whether the entity was established solely for this acquisition.

Shoprite has not yet commented further on the timeline or conditions of the sale.

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