Shoprite Mall has announced the closure of its branch at Novare Central Mall in Abuja’s Wuse Zone 5 by June 30, 2024.
The announcement came in a circular signed by CEO Dr. Folakemi Fadahunsi, and was shared with our correspondent on Monday.
An employee at the store, who asked to remain anonymous, confirmed the news, saying, “Yes, it is true, we just heard it here too.”
This decision follows a detailed look into the store’s financial performance and the current business environment.
Vendors were also notified that their services would no longer be needed at the store.
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.
“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 also mentioned that it would review its accounting records over the next 60 days to settle any outstanding balances with vendors.
“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,” it added.
This closure is part of a larger trend of multinational companies reducing their presence in Nigeria. Recently, Diageo sold its 58.02% stake in Guinness Nigeria to Tolaram Group on June 11, 2024.
The exit of multinational companies from Nigeria has led to an estimated N94 trillion loss in output over the past five years, according to economist Dr. Vincent Nwani, a former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry.
Dr. Nwani noted that over ten companies shut down operations in 2020, including Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd. In 2021, more than 20 companies exited, such as Tower Aluminium Nigeria PLC, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, and Surest Foam Ltd. The trend continued in 2022 with over 15 known brands leaving, including Universal Rubber Company Ltd, Mother’s Pride Ventures Ltd, Errand Products Nigeria Ltd, and Gorgeous Metal Makers Ltd.
In 2023, more than ten major companies left, notably Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, and Bolt Food & Jumia Food Nigeria.
In the first half of this year, five significant companies, including Microsoft Nigeria, Total Energies Nigeria (due to its divestment), PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC, have also exited Nigeria.
