Executive summary: Pick n Pay to seek new growth engine in Nigeria.
Nigeria’s fundamentals continue to attract investors seeking high return - Lagos alone accounts for over 20 million people and continues to see double digit growth.
The Cape Town based supermarket chain has seen a 26% increase in earnings, but seeks to enter high growth markets to counter head winds at home. PnP is partnering with Lagos-based AG Leventis to enter Nigeria, where there are currently fewer than 20 malls for 180 million people. PnP executives feel they have learnt from their competitors’ mistakes, as seen by both Woolworths and Truworths pulling out of Nigeria in recent times; a strong local partner was a key step in the right direction. Already present in Botswana and Zimbabwe where operating profit rose by 20% in 2016, PnP has not yet set a date for market entry in Nigeria.