Pick n Pay, the South African grocery retailer, has announced that it will exit the Nigerian market after just four years. The company is selling its 51% stake in a joint venture as part of a strategy to improve its financial performance outside of South Africa.

The retailer entered Nigeria in 2018 by partnering with A.G. Leventis (Nigeria) and currently operates only two stores in the country. The first store opened in the upscale Victoria Island area of Lagos. However, Pick n Pay’s exit reflects a broader trend of multinational companies leaving Nigeria due to difficulties in making profits.

The company has been facing financial challenges, reporting significant losses in its core supermarket operations and rising borrowing costs. Despite these issues, Pick n Pay has seen good performance in its clothing and online sales, as well as improvements in its owned supermarkets. CEO Sean Summers is optimistic that they can reduce trading losses by up to 50% this year.

In contrast, Pick n Pay’s discount brand, Boxer, is doing well, with trading profits rising by 16%. The company plans to list Boxer on the Johannesburg Stock Exchange by the end of the year, hoping to raise up to 8 billion rand ($452 million) in what could be one of the largest stock offerings in Africa this year.