The Competition and Fair Trading Commission invites written comments on the Shoprite–Karson Investment Trust transaction.
Shoprite, South Africa’s largest grocery retailer, has announced it will be exiting the Malawi market as it will be selling all its stores in the country.
The retailer entered the Malawi market in 2000, but it is now in talks with the Karson Investment Trust to sell all five of its operating stores in the country for an undisclosed amount.
In 2022, Shoprite shut down rumours that it would be closing its Malawi operations when it sold one of its stores due to financial losses.
Shoprite is not shy of exiting markets where it is not achieving sales, as this is not the first country where the retailer has closed its doors. It has pulled out of the Nigerian market, Uganda, Kenya, Madagascar, and the Democratic Republic of Congo.
Even back at home, the retailer sold its furniture business, OK Furniture and House and Home brands to Pepkor, citing structural changes to the business. However, the retailer still operates the brands in Angola and Mozambique.
Malawi market
Shoprite confirmed the news in its trading statement for the 52 weeks ended 29 June 2025.
“Shoprite Malawi signed a sale of assets agreement on 6 June 2025 to dispose of the assets used in relation to its operations, which consists of five trading stores.
“The agreement is pending the fulfilment of conditions precedent to be met during October 2025, including approval from the Competition and Fair-Trading Commission as well as the Reserve Bank of Malawi,” read the statement.
Should the Competition and Fair Trading Commission approve the sale, Karson Investment Trust will run the five stores as Shopwise Trading Limited, selling groceries and other merchandise at a retail price.
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Shoprite leaves Ghana
The retailer’s trading statement states Shoprite has also accepted an offer to sell its operations in Ghana.
“The group received a binding offer during June 2025 to dispose of the assets and liabilities in relation to the operations in Ghana, which consists of seven trading stores and one warehouse. The sale is deemed highly probable, and the operations have therefore been classified as discontinued”
Shoprite replied: “The group is currently in a closed period and unfortunately unable to assist with your request” to The Citizen’s enquiry about why the retailer is exiting the Malawi and Ghana businesses.
Shoprite is South Africa’s largest retailer by market capitalisation, sales, profit, employee count, and customer base.
The Competition and Fair Trading Commission, in a notice, stated that it is welcoming written comments from interested stakeholders about the transaction between Shoprite and the Karson Investment Trust.
The Competition and Fair Trading Commission is a statutory body established in Malawi to regulate, monitor, control, and prevent actions that negatively affect competition and fair trading.
“The submissions should include comments on the developments and growth of the retail trading of groceries and other merchandise and the holding and leasing of property industry, any expected benefits arising out of the proposed transaction, and the impact of the transaction on competition, consumer welfare and the economy as general.”
Store closure in 2022
According to Malawi Journal news, the Malawian government came under fire in 2022 after rumours that Shoprite would be closing operations in the country.
Malawi’s minister of labour, Vera Kamtukule, told parliament that Shoprite management reassured her that it is not exiting the country, but only selling one of their stores as it has been registering losses for three years before the closure.
The closure of the store led to 25 employees losing their jobs, and left Shoprite with five stores in the country.