UPDATE 2-South African retailer Mr Price pulls plug on Nigeria

* FY HEPS down 10.4%
* Has closed 4 of 5 stores in Nigeria
* See 300 million rand in cost savings

(Recasts with Nigeria exit)
By Nqobile Dludla
JOHANNESBURG, June 25 (Reuters) - Mr Price Group MRPJ.J
has become the latest South African retailer to retreat from
African markets due to weak economic growth, difficulties with
repatriating funds and local procurement.
Mark Blair, chief executive of the clothing and homeware
retailer, told analysts at the group's full-year results
presentation on Thursday that it was exiting Nigeria after
walking away from Australia and Poland last year.
Mr Price, which reported a 10.4% fall in annual earnings,
has closed four of its five stores in the West African country
and expects to close the last one in the coming months, Blair
said.
"Quite frankly I'm not prepared to invest any further
whether it's investment in time or in money into a country that
is volatile as it is," he said.
"In the early days we were making money but now we just came
up against too many roadblocks, whether it's getting the money
out, etc," he said.
The firm is also reviewing franchise operations.
In recent years Mr Price has taken a cautious approach to
international expansion across and outside Africa as organic
growth has proven challenging and "distracting".
The company's decision to exit Nigeria follows a decision by
homeware and clothing retailer TFG TFGJ.J last week to leave
Kenya and Ghana. Mr Price, which also sells sportswear, saw revenue in the
year to March 28 rise 2.1% to 23 billion rand ($1.32 billion),
with retail sales up by 1.5%, boosted by clothing and home
divisions.
It did not declare a dividend in order to preserve cash.
The company has identified 300 million rand worth of cost
saving initiatives, which are largely related to employment
costs and also include a 23% reduction in budgeted capital
expenditure for the 2021 financial year, group CFO Mark Stirton
said at the presentation.
($1 = 17.4159 rand)