Shoprite dismisses plans to close Tanzania shop

FMCG SUPPLIER NEWS

In2EastAfrica.net - May 21st, 08:56

The South African supermarket chain, Shoprite, which invested its business in the country some years ago has dismissed recent speculations regarding the imminent closure of some of its stores and possible exit from Tanzania for good. 

While the chain’s Corporate Communication Manager, Sarita van Wyk, is refuting the rumours, an email sent to Johannesburg over the weekend returned with a response, which indicates that the decision was pending the company’s ongoing stock taking of all the operations on the continent.

“All countries that the Shoprite Group trades in are consistently being reviewed in order to address issues which may impact on its business, such as the operational cost of registering merchandise, that affects the viability of our supermarkets,” responded Van Wyk via electronic mail.

According to the Shoprite Corporate Communications Manager; “No final decision has been made with regard to stores in Tanzania and Shoprite remains hopeful that it will overcome all hurdles to enable it to make a good investment in the country again.”

The speculations surrounding Shoprite’s imminent exit from Tanzania started floating in Arusha where it was reported that there were some discussions between the supermarket operator and the management of Tanganyika Farmers Association regarding future contracts for the rental of TFA warehouses where Shoprite operates.

Shoprite-Checkers, which entered the Tanzanian market in 2001, was the first outfit to run full-fledged supermarkets in the country and since then it has been operating four outlets in the country, including two supermarkets in Dar es Salaam, as well as a supermarket and wholesale point in Arusha.

Ever since it opened up shop in Arusha in October 2002 the Shoprite stores have remained the only real supermarkets to serve the city in the last 11 years. Its presence at the Tanganyika Farmers Association premises has given birth to other modern shopping outlets and restaurants that now form the popular TFA shopping mall.

In Dar es Salaam Shoprite runs a supermarket in the Kamata area along Pugu Road and another at Mlimani City’s Shopping Mall in the Ubungo area. The outfit also operates a wholesale point adjacent to the Arusha Shoprite supermarket at Kilombero along Dodoma Road.

Shoprite had previously closed two minor outlets in Dar es Salaam after they were found to be operating at a loss. Its bulk buying power helped it offer what it describes as “Lowest prices you can trust!” especially on food and household items.