Retail Supermarkets Nig Limited operators of Shoprite Mall announced that it will cease operations at its Wuse, Abuja branch on June 30, 2024.
The company disclosed this in a circular signed by Chief Executive Officer Dr. Folakemi Fadahunsi on behalf of the retail supermarket, which was obtained by Nairametrics.
It attributed the reason for the decision to the current business climate in the country and the process was a thorough evaluation of the store’s financial performance.
Additionally, vendors were informed that their services would no longer be required at the location and it will review its financial records in the next 60 days and contact those on amounts owed and payment schedule.
It 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.”
“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.”
“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.”
Recent business closures in Nigeria
The closure of the Shoprite Abuja Mall marks another chapter in the now frequent closure of businesses across the country over adverse business and economic conditions.
In the past few years, notable companies including multinationals like GSK, Procter & Gamble, Sanofi and in recent times Kimberly-Clark have announced their exit from the country citing problems such as weak foreign exchange, increased power cost, reduced consumer purchasing power due to high inflation and others.
In the past 18 months, inflation has risen from around 22% to the current 33.95%- a 28-year high mainly propelled by food and transport costs.
Furthermore, the naira has weakened by over 100% in the last year from around N462/$ to around N1470 to the USD following the unification of the forex market and efforts by the CBN to reduce the chasm between the official and parallel market rates.
