Where Africa's Top Retailer Went Wrong

Shoprite is pulling back after trying to build a continentwide operation

- Janice Kew

Two decades ago, Shoprite Holdings Ltd. unveiled an ambitious plan to expand beyond its home base in South Africa, and over the following years the company entered more than a dozen countries north of the border. Along the way, it became the continent's biggest grocer by tapping into markets with rapidly growing populations but little formal retail. Investors loved the idea, confident that developing economies would spur demand for bread, Champagne, and just about everything else. And Shoprite seemed the right vehicle for their optimism, given that it had outperformed competitors in South Africa and proved its aptitude for selling basic groceries, housewares, pharmaceuticals, and luxury goods.