Shoprite Nigeria, under the management of Retail Supermarket Nigeria Limited (RSNL), has declared its intention to close its Ado Bayero Store in Kano, effective from January 14, 2024. The decision, attributed to the store’s sub-optimal performance and challenging business climate, was communicated in a statement by the Chief Executive Officer, Hubertus Rick.
In the statement, Rick outlined the retail chain’s commitment to closing underperforming stores while simultaneously expressing confidence in the Nigerian market. Despite the closure, Shoprite Nigeria plans to open four new outlets annually across the country, guided by comprehensive retail market research.
While revealing plans for store closures, the CEO shed light on ongoing efforts to reopen and restore business in various locations. Shoprite has already commenced reopening stores in Circle Mall, Lekki, Lagos, Garden City Mall, Port Harcourt, Galaxy Mall, Kaduna, and Shoprite Benin. Rick highlighted the resilience of the brand, citing the restoration of the Circle Mall, Lekki store, which was destroyed during the End SARS protests in October 2020.
The decision to close the Kano outlet is attributed to factors such as consumer buying power, high business costs, rental expenses, and the company’s ethical commitment. Rick clarified that the non-renewal of the rent at the Ado Bayero store was influenced by its negative financial performance and the prevailing business climate.
Acknowledging the potential impact on employees and the community, Rick assured affected staff of the company’s support during the transition period. He emphasized the well-being of employees as a top priority and announced plans to assist them in finding new opportunities within the company. Rick encouraged affected individuals to apply for vacant positions in existing stores nationwide or consider opportunities in new stores scheduled to open in the coming months.
Expressing gratitude for the dedication and contributions of Shoprite’s employees, Rick praised their hard work and commitment throughout the years. He pledged that the company would navigate the transition with transparency, ensuring a seamless process for everyone involved. Rick mentioned that more information regarding severance packages and other details would be provided in the upcoming days and weeks.
Despite the current challenges faced by retail businesses in Nigeria, Shoprite has affirmed its long-term commitment to operating in the country. The company expressed confidence in the economic policy options pursued by the Federal Government, anticipating long-term results that will create an enabling environment for the retail business to thrive in Nigeria.