In a move that reflects the challenging economic landscape, ShopRite has announced it will close its store at Novare Central Mall in Wuse Zone 5, Abuja. The closure, scheduled for June 30, 2024, was confirmed by Dr. Folakemi Fadahunsi, CEO of Retail Supermarkets Nigeria Limited.
The decision comes after a thorough assessment of the store’s financial health and the broader business environment. Vendors were also informed that their services would no longer be needed beyond the closure date.
“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 it would review its accounting records over the next 60 days to settle any outstanding balances.
“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 added.
This closure is part of a wider trend of multinational companies scaling back or exiting Nigeria. Just recently, Diageo sold its 58.02% share in Guinness Nigeria to Tolaram Group on June 11, 2024. The departure of multinationals has severely impacted Nigeria’s economy, with an estimated N94 trillion loss of output over the past five years, according to economist Dr. Vincent Nwani.
Several well-known companies have left Nigeria in recent years, including Standard Biscuits Nigeria Ltd, Unilever Nigeria PLC, and Microsoft Nigeria, reflecting the tough economic climate that businesses are facing.
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