Shoprite has announced the closure of its branch at Novare Central Mall in Wuse Zone 5 Abuja.
The store, which has been a fixture in the area, will cease operations on June 30, 2024, a decision they said was made after an evaluation of the Company’s financial performance and the prevailing business climate.
The announcement, contained in a circular signed by Shoprite’s Chief Executive Officer, Dr. Folakemi Fadahunsi, outlines the company’s regret over the necessity of this move but emphasizes that it is essential for the long-term growth of Retail Supermarkets Nigeria Limited. The decision will also impact vendors associated with the store, as their services will no longer be required beyond the closure date.
The circular reads; “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.
“Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.”
“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.
“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us.”
Shoprite has pledged to review its accounting records over the next 60 days to settle any outstanding balances with vendors. The company expressed its gratitude for the past business relationships and offered support to partners during this transition.
The closure of Shoprite in Abuja is part of a broader trend of multinational companies scaling down operations or exiting the Nigerian market. Recently, Diageo sold its majority shareholding in Guinness Nigeria to Tolaram Group, reflecting the challenging business environment.
According to Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, the exodus of multinationals has resulted in a loss of output, estimated at N94 trillion over the past five years.
This trend has seen numerous companies leave Nigeria, with notable exits including Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, and Microsoft Nigeria.
