Shoprite has announced it will close its Abuja branch located in Novare Central Mall, Wuse Zone 5, effective June 30, 2024. This information was disclosed in a circular signed by Chief Executive Officer Dr. Folakemi Fadahunsi and obtained by our correspondent on Monday.
A store employee, who requested anonymity, confirmed the closure: “Yes, it is true; we just heard it here too.”
The decision follows a thorough evaluation of the store’s financial performance and the prevailing business environment. The circular noted that vendors servicing the store would no longer be needed. It 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 company will review its accounting records over the next 60 days to settle 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. 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,” the circular added.
This closure is part of a broader trend of multinational companies scaling down operations, transferring ownership, or exiting the Nigerian market. Recently, beverage giant Diageo sold its 58.02 percent stake in Guinness Nigeria to Tolaram Group on June 11, 2024.
Economist Dr. Vincent Nwani, a former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, has highlighted the significant economic impact of these exits, estimating a N94 trillion loss of output in five years. Dr. Nwani noted that since 2020, numerous companies have ceased operations in Nigeria, including Standard Biscuits Nigeria Ltd, Union Trading Company Nigeria PLC, and Unilever Nigeria PLC.
In 2020, over 10 companies shut down, and this trend continued with more than 20 companies exiting in 2021, including Tower Aluminium Nigeria PLC. The following years saw similar departures, with over 15 brands leaving in 2022, including Universal Rubber Company Ltd, and more than 10 major companies in 2023, such as Procter & Gamble Nigeria and GlaxoSmithKline Consumer Nigeria Ltd.
In the first half of 2024 alone, five major companies, including Microsoft Nigeria and Total Energies Nigeria, have exited the Nigerian market.
