Shoprite Mall has announced the impending closure of its branch located at Novare Central Mall in Wuse Zone 5, Abuja, effective June 30, 2024. This decision, disclosed in a circular signed by CEO Dr. Folakemi Fadahunsi, follows a comprehensive assessment of the store’s financial performance and the prevailing business environment.
A store employee, speaking on condition of anonymity, confirmed the closure, stating, “Yes, it is true, we just heard it here too.”
The circular detailed the reasons behind the decision, citing financial evaluation and current business climate as primary factors. It also informed vendors that their services would no longer be required at the Wuse location. “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,” the circular read.
The company assured vendors that a review of accounting records would be conducted over the next 60 days to settle any 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.”
This closure is part of a broader trend of multinational companies scaling down operations or exiting the Nigerian market altogether. Recently, Diageo sold its 58.02% stake in Guinness Nigeria to Tolaram Group. Over the past five years, Nigeria has seen a significant number of multinationals, including Unilever Nigeria PLC and Procter & Gamble Nigeria, cease operations, leading to a substantial economic impact.
Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, highlighted that the exodus of these companies has resulted in a loss of N94 trillion in output over five years. He noted that in the first half of 2024 alone, major companies like Microsoft Nigeria and Total Energies Nigeria have also left the country.
As Shoprite prepares to close its doors in Wuse, the company expressed gratitude to its vendors and reassured them of support during the transition. “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 circular concluded.
