Game Stores, a South African retail store has announced that it has started on a process of exiting the Ugandan market.
In a statement issued on Tuesday, 4th October 2022, Game Vice President Neville Hatfield announced that they have started on a formal process of exiting Uganda after they failed to sell the company to local investors.
Hatfield explained that in March 2021, Massmart, the owner of Game retail store in Uganda, announced that following a review of its Game store portfolio in East and West Africa, it was exploring the idea that store performance might improve under the management of investors and entrepreneurs with a better understanding of local market conditions.
As a result, he said, Massmart, together with the Game management team, initiated a process over a 12-month period to investigate, as a preferred option, the opportunity to sell our store in Uganda to local investors.
“Unfortunately, this initiative has not yielded meaningful results. One possible way forward is now to consider closing our Game store in Uganda and we have therefore initiated potential store closure consultations with our staff members in the potentially affected stores,” he said.
“From the very beginning of the process to explore alternative options for our store in Uganda we have been firmly committed, regardless of the decision taken, to honour our obligations to our staff members, customers and business partners, and we would like to assure you that this remains the case,” he added.
Hatfield said their present focus is to ensure a transparent consultation process with their staff members and their representatives.
“From the very beginning of the process to explore alternative options for our store in Uganda we have been firmly committed, regardless of the decision taken, to honour our obligations to our staff members, customers and business partners, and we would like to assure you that this remains the case,” said Hatfield.
He also announced that it is difficult to anticipate the timing of the consultation process and assured that will revert as soon as they have collective clarity on the way forward
Game stores joins its peer Shoprite Holdings SHPJ.J which last year pulled out of the Ugandan market.
Game, which opened in Uganda in 2004, operates in 12 African countries including South Africa, Nigeria, Zambia, Ghana, Malawi, Mauritius, Mozambique, Namibia, Botswana, Uganda, Kenya and Tanzania.