South Africa retail store Game to exit East African market

South African retail giant Massmart that operates the Game Stores has revealed its plan to sell its stores in Kenya, Uganda and Tanzania, marking the latest of a string of retreats from East Africa by a southern African firm.

The Johannesburg Stock Exchange-listed retailer announced on Friday it had put up 14 Game stores in East and West Africa for sale, citing a need to focus on its “core strengths” as the group’s losses narrowed during the half-year ended June 2021.

Massmart chief executive Mitchell Slape said the chain had begun a formal sales process to divest in five Game stores in Nigeria, four in Ghana, three in Kenya, one in Uganda, and one in Tanzania.

“We have reached the conclusion that the performance and complexity in running the 14 stores in five markets in the East and West Africa is something frankly that we needed to address,” said Mr Slape during the group’s virtual financial results presentation on Friday.

The exit plan ends a five-year stint for the Sandton-headquartered retailer in Kenya and further extends the poor run by South African retailers and companies who have faced headwinds trying to crack the local market.