Pick n Pay Sells Pikwik Stake to EcoCommerce, Exits Nigeria

Pick n Pay has officially exited the Nigerian market, transferring its 51% stake in local joint venture Pikwik to private equity firm EcoCommerce Nigeria. While the Pick n Pay brand will remain in the country through a licensing agreement, the South African retailer will no longer be involved in its operations or finances.

With just two stores in Nigeria, Pick n Pay’s presence was limited compared to other South African retailers like Shoprite or Spar. Still, its quiet departure adds to the growing list of international companies that have struggled to establish themselves in Africa’s most populous country.

Persistent economic pressures influenced the decision. Although inflation in Nigeria has slowed in recent months, rising living costs and reduced household spending have made the environment particularly challenging for consumer businesses. Throughout 2024, supermarkets have grappled with low profit margins and unpredictable operating conditions.

In June, Shoprite closed its Wuse store in Abuja, marking another contraction in the sector. Spar has also scaled back operations. Pick n Pay’s exit, though lower profile, reflects the same fundamental challenges: international retailers face steep barriers in Nigeria’s complex retail landscape.

EcoCommerce Nigeria’s acquisition of Pikwik comes at a time of continued uncertainty—but also long-term potential. Nigeria’s youthful population and rapid urbanisation present major growth opportunities for retailers that can adapt to local conditions.

Still, success will not come easily. The Nigerian market has been unforgiving even to experienced and well-funded companies. EcoCommerce will need to move beyond relying on brand recognition and focus on building operational resilience and local know-how.

Pick n Pay’s departure underscores the broader difficulties facing foreign players in Nigeria’s retail sector. Although its name will remain on storefronts, the company’s full divestment signals a cautious retreat from a market that has yet to meet expectations for many global firms.

For EcoCommerce, the acquisition is both a risk and an opportunity. The road ahead will require careful strategy, deep understanding of local consumers, and the flexibility to navigate economic headwinds. Whether the firm can succeed where others have faltered remains to be seen.