Shoprite has announced that it will close its Abuja branch located at Novare Central Mall in Wuse Zone 5 on June 30, 2024. The decision was disclosed in a circular signed by the Chief Executive Officer, Dr. Folakemi Fadahunsi, and obtained by our correspondent on Monday.
A staff member, speaking on condition of anonymity, confirmed the news: “Yes, it is true, we just heard it here too.”
The closure results from an in-depth evaluation of the store’s financial performance and the current business environment. Vendors were also notified that their services would no longer be required post-closure.
The circular 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. We believe this is the best course of action for our organization’s long-term growth.”
The company also announced plans to review its accounting records over the next 60 days to settle any outstanding balances with vendors linked to the Novare Wuse Central Mall store.
The closure of Shoprite is part of a broader trend of multinationals scaling down or exiting Nigeria. Recently, Diageo sold its 58.02% shareholding in Guinness Nigeria to Tolaram Group. According to Dr. Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry, the departure of these companies has resulted in a N94 trillion loss of output over the past five years.
Significant company exits include Standard Biscuits Nigeria Ltd and NASCO Fiber Product Ltd in 2020, Tower Aluminium Nigeria PLC and Framan Industries Ltd in 2021, Universal Rubber Company Ltd and Mother’s Pride Ventures Ltd in 2022, and Unilever Nigeria PLC and Procter & Gamble Nigeria in 2023. In the first half of 2024 alone, Microsoft Nigeria, Total Energies Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clerk Nigeria, and Diageo PLC have left the country.
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