Shoprite Mall has announced its decision to cease operations at its Novare Central Mall branch in Wuse Zone 5, Abuja, effective June 30, 2024.
The announcement was made in a circular signed by the Chief Executive Officer, Dr. Folakemi Fadahunsi, citing a comprehensive assessment of the store’s financial viability and the current economic climate.
The circular addressed to vendors 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.”
It further elaborated, “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.”
The closure comes amidst a wave of multinational companies scaling down or exiting Nigeria, contributing to a significant economic impact.
Economist Dr. Vincent Nwani highlighted that Nigeria has suffered an estimated N94 trillion loss in economic output over the past five years due to multinational exits and closures.
In recent months, several major companies have departed the Nigerian market, including Diageo’s sale of its majority stake in Guinness Nigeria and the exits of Microsoft Nigeria, Total Energies Nigeria, and PZ Cussons Nigeria PLC.
Dr. Nwani emphasized the broader implications of these departures, noting, “For the first year, over 10 companies shut down operations in 2020, with more following suit in subsequent years, resulting in a substantial loss of economic activity.”
The closure of Shoprite’s Abuja branch underscores ongoing challenges in Nigeria’s business environment, prompting concerns over future investment and economic stability.
Shoprite Nigeria’s decision reflects broader concerns about the viability of retail operations amidst economic pressures, prompting analysts to call for measures to attract and retain foreign investment to bolster the economy.
The closure is expected to impact local vendors and employees, with the company pledging to review accounting records over the next 60 days to settle outstanding balances and support stakeholders during the transition.
As Nigeria navigates economic challenges, stakeholders are urging for reforms to enhance business competitiveness and create a more conducive environment for sustainable economic growth.
For further inquiries or assistance during this transition period, Shoprite has encouraged affected parties to contact them directly.