EXCLUSIVE: How dollar rental cost forced Shoprite out of Kano

…retail giant pays dollar rent in 10 out of 14 locations in Nigeria

Retail giants Shoprite were forced to close their outlet in Kano as a result of difficulties in paying its rent which is charged in dollars, WesternPost has gathered.

Retail giant according to inside sources within the organisation left Kano because of low sales,

WesternPost gathered that 94 per cent of sales revenue made from the Kano outlet goes paying rent, which made it difficult to take care of other needs of the business.

This became more difficult, WesternPost gathered after the rise in exchange rate.

The landlord charges dollar rent in Kano and nine other Shoprite locations in Nigeria.

The company had in a statement by its management on Thursday announced that it was shutting down its Kano outlet located at Ado Bayero Mall on January 14, 2024.

“I regret that our store in Ado Bayero Mall, Kano, will be closing its doors on January 14 2024. This decision was not made lightly, as we understand the impact it may have on our employees and the community. However, after careful evaluation of the financial situation of the store and the current business climate, we believe that it is the best cause of action for the long-term growth of our organization. 

“We understand that this news may be difficult to digest. We want to assure you that we are here to support you during this transitional period, your well-being is our top priority, and we will do everything we can to assist you in finding new opportunities within our company, we encourage you to apply for any vacant position in existing our store across the country through the Human Resources department,” the statement read in part. 

WesternPost further gathered that 88 staff affected in Kano outlet were affected by the closure, but the company plans to redeploy good Kano staff to other locations in Nigeria while those with poor appraisal will lose their job.

The sources also told our correspondent that the company is realigning business operations in Nigeria and will close down locations with poor returns.

Shoprite is owed 100 per cent by Nigerian, Tayo Amusan, who bought the business from the South African owner after they sold their stake in Nigeria.