Shoprite cites the current economic climate as the reason for closing its outlet in Abuja.
Shoprite supermarket has announced its readiness to close its branch in Abuja by the end of the month due to the “current business climate.”
The South Africa retail giant announced this in a circular signed by the Chief Executive Officer, Dr Folakemi Fadahunsi, on Monday, June 24, 2024.
The company said the closure of its outlet located in Novare Wuse Central Mall, Abuja is its best course of action for its long term growth.
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.”
Due to the economic situation of the country, many multinational companies have, in recent times, either left the country, scaled down operations, orsold their stakes.
The closure of the Abuja mall came six months after the company shut down its Kano branch due to financial difficulties and high production costs currently hitting business establishments in the country.
Recall that in August 2020, Shoprite announced its decision to discontinue its operation in Nigeria.
In the statement announcing the development, the company mentioned currency fluctuation, logistic concerns, COVID-19, and purchasing power as well as profit repatriation as some of the reasons for its exit.
