Woolworths to pull out of Nigeria

South African retailer Woolworths says it has concluded plans to pull out of Nigeria. 

The retailer cited high rental costs and supply chain challenges in the country.

The news comes a day after Woolworths announced it had signed agreements to purchase its franchise businesses in Botswana, Namibia, Swaziland and Ghana.

“The Nigerian business was unable to sustain a compelling product and value proposition which represents the brand well and meets the needs of the Nigerian customer,” the company said in a statement on Wednesday.

Woolworths runs three stores selling clothes and general merchandise in Nigeria, where it opened its first store in late 2011.  

Although the likes of discount grocer Shoprite have done well in Nigeria, Woolworths' problems underline the difficulty of doing business in countries with poor infrastructure, little-understood consumer profiles and fluid duty regimes. 

Woolworths said it remained committed to the rest of its business in Africa, where it runs 59 stores in nearly a dozen countries.