CEM REPORT, RETAIL | Shoprite Nigeria, operated by Retail Supermarket Nigeria Limited (RSNL), has announced the closure of its Kano store located at Ado Bayero Mall.
The decision comes amid a challenging economic climate in Nigeria, characterized by weak consumer buying power, high costs of doing business, and rising rental costs.
In a statement, Shoprite’s Chief Executive Officer, Hubertus Rick, explained the reasons behind the closure:
“After careful evaluation of the financial situation of the store and the current business climate, Shoprite believes it is the best course of action for the long-term growth of our organization.”
This decision, effective January 14, 2024, has sent shockwaves through the local community and sparked concerns about the future of the company’s presence in the north-western Nigerian city.
Shoprite Nigeria Plan
Rick emphasized that the closure is not a reflection on the city of Kano itself, which he described as “a big city with room for a Shoprite concept.” He assured that the company remains committed to Nigeria and plans to open four new outlets annually across the country.
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“We plan to open four new outlets annually across the country, guided by reliable market research.”
These new stores, slated for Circle Mall, Lekki, Garden City Mall Port Harcourt, Galaxy Mall, Kaduna, and Shoprite Benin, paint a picture of expansion and resilience amidst challenges.
Impact on Employees and Community:
The closure of the Kano store will undoubtedly have an impact on employees and the local community. Shoprite has assured that it will provide severance packages and other support to affected employees. The company is also working to find new opportunities for them within its existing stores across the country.
“We understand that this news may be difficult to digest, and we want to assure you that we are here to support you during this transition period.
“Your well-being is our top priority, and we will do everything we can to assist you in finding new opportunities within our company. We encourage you to apply for any vacant positions in our existing stores across the country through the Human Resources department.
“In the upcoming days and weeks, we will provide you with more information regarding severance packages and other vital details,” Ricks added.
The closure of Shoprite’s Kano store is a sign of the challenges facing retail businesses in Nigeria. However, the company’s commitment to the country and its plans for expansion demonstrate its belief in the long-term potential of the Nigerian market. It remains to be seen whether Shoprite’s optimism will be justified, but its decision to stay and invest in Nigeria is a positive sign for the country’s economic future.
