Shoprite Mall will close its branch at Novare Central Mall in Wuse Zone 5, Abuja, on June 30, 2024. The announcement was made in a circular signed by Chief Executive Officer Dr. Folakemi Fadahunsi and obtained by our correspondent on Monday.
A staff member at the store confirmed the news, saying, “Yes, it is true, we just heard it here too.”
Shoprite attributed the decision to a thorough evaluation of the store’s financial situation and the current business climate. The company also informed vendors that their services would no longer be needed at this location.
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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.”
It continued, “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.”
The company will review its accounting records over the next 60 days to settle outstanding balances.
“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. We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.”
Shoprite expressed gratitude to its partners, saying, “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.”
The closure of the Shoprite branch is part of a larger trend of multinational companies scaling down or exiting operations in Nigeria. Recently, Diageo sold its 58.02% shareholding in Guinness Nigeria to Tolaram Group.
Economist Dr. Vincent Nwani noted that “the exodus of multinationals from Nigeria has resulted in a N94 trillion loss of output over five years. Notable companies that have left include Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, Deli Foods Nigeria Ltd, Tower Aluminium Nigeria PLC, Framan Industries Ltd, and more.
“In 2023, major companies such as Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, and ShopRite Nigeria exited the market. In the first half of 2024, companies like Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC have also left.”