Shoprite Mall has announced its decision to discontinue operations at one of its Abuja branches effective June 30, 2024.
The affected branch is situated at Novare Central Mall in Wuse Zone 5 of the capital city.
The announcement was conveyed in a circular signed by the Chief Executive Officer, Dr. Folakemi Fadahunsi, representing the retail supermarket.
An anonymous staff member at the store confirmed the report, stating, “Yes, it is true, we just heard it here too.”
The decision by the popular mall was based on a comprehensive assessment of the store’s financial situation and the prevailing business environment.
Furthermore, the mall informed vendors that their services would no longer be required at the store.
The circular read, “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 circular also mentioned that the company will conduct a review of its accounting records within 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 (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.
Several multinational corporations have departed Nigeria through scaling down operations, transferring ownership, or selling their stakes. The latest instance was the sale of Diageo’s 58.02 percent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, estimates that the departure of these multinationals from the Nigerian economy has resulted in a loss of N94 trillion in output over the past five years.
He said in the first year, more than 10 companies ceased operations in 2020, notably including Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd.
In 2021, he stated that over 20 companies exited the market, including Tower Aluminium Nigeria PLC, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, and Surest Foam Ltd.
According to his statement, in 2022, over 15 well-known brands exited Nigeria, such as Universal Rubber Company Ltd, Mother’s Pride Ventures Ltd, Errand Products Nigeria Ltd, and Gorgeous Metal Makers Ltd.
In 2023, more than 10 major companies departed, including 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 prominent listed companies exited Nigeria, namely Microsoft Nigeria, Total Energies Nigeria (due to its divestment), PZ Cussons Nigeria PLC, Kimberly-Clark Nigeria, and Diageo PLC.
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