Shoprite to close Abuja branch June 30

By Innocent Raphael

Shoprite Mall has announced its decision to close its branch at Novare Central Mall in Wuse Zone 5, Abuja, effective June 30, 2024.

The announcement came in a circular signed by Dr. Folakemi Fadahunsi, Chief Executive Officer of Retail Supermarkets Nigeria Limited, and obtained by our correspondent on Monday.

Confirming the closure, a staff member at the store, who requested anonymity, stated, “Yes, it is true, we just heard it here too.”

According to the circular, the decision was made after a thorough evaluation of the store’s financial situation and the prevailing business environment. The mall has also informed its vendors that their services will no longer be required post-closure.

The circular stated, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organization’s long-term growth.”

Additionally, the company assured that it would review its accounting records over the next 60 days to settle any outstanding balances with vendors tied specifically to the Wuse branch.

“We will carefully review our accounting records over the next 60 days. We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule,” the circular added. “We would like to express our gratitude for your past business. If you have any questions or concerns, please do not hesitate to reach out to us.”

This closure is part of a broader trend of multinational companies scaling down operations, transferring ownership, or exiting Nigeria altogether. Recently, beverage giant Diageo sold its 58.02 percent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.

The exodus of multinationals has significantly impacted Nigeria’s economy. According to Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, the country has suffered a N94 trillion loss in output over the past five years due to these departures.

Dr. Nwani highlighted that in 2020 alone, over ten companies shut down operations, including Standard Biscuits Nigeria Ltd and NASCO Fiber Product Ltd. In 2021, more than 20 companies exited, followed by 15 known brands in 2022, and over ten major companies in 2023.

This year, five major companies, including Microsoft Nigeria and Total Energies Nigeria, have already left the market.

Back to top button