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Read Details As Shoprite Sets To Close Operations Over Nigeria’s Bad Economy



Read Details As Shoprite Sets To Close Operations Over Nigeria’s Bad Economy

Shoprite Mall has announced its intention to cease operation in its Kano branch, Northwest Nigeria from January 14, 2024.

This was contained in a circular signed by the management of the retail supermarket on Thursday.

The mall, located in Bayero Kano State, said it would not continue its operations in the state due to the current financial situation of the mall in the state as well as the difficult business climate in the country.

This development is coming on the heels of the current announcement by Jumia Food to cease operation in Nigeria by the end of this month, citing burgeoning economic challenges and the high cost of operation in the country.

In the circular, the supermarket noted that the decision is regrettable, however necessary, hinting that all the employees working at the mall will be laid off once it ceases operation in the state.

I regret that our store in Ado Bayero Mall, Kano, will be closing its doors on January 14 2024.

This decision was not made lightly, as we understand the impact it may have on our employees and the community. However, after careful evaluation of the financial situation of the store and the current business climate, we believe that it is the best cause of action for the long-term growth of our organization.


Read Details As Shoprite Sets To Close Operations Over Nigeria’s Bad Economy


“We understand that this news may be difficult to digest. We want to assure you that we are here to support you during this transitional period, your well-being is our top priority, and we will do everything we can to assist you in finding new opportunities within our company, we encourage you to apply for any vacant position in existing our store across the country through the Human Resources department,” the statement reads in part.

Meanwhile, the store indicated that they will be opening new branches in other parts of the country, adding that their employees in Kano can apply for jobs in those stores.

“Additionally, we will operating new stores in the upcoming months and you are welcome to apply for employment there as well,” the statement outlined.

Recall that profitability remains a challenge for many players in the retail industry that operates a chain of supermarkets, discount department stores, and grocery stores in Nigeria.

Given the escalating cost of business operations and mounting inflationary pressure, the business environment continues to force many companies, and small and medium-sized businesses out of the economic space.

Earlier, Jumia announced a complete closure of its food delivery service, Jumia Food, in Nigeria due to a hostile business environment and an inability to optimize profit.

Francis Dufay, CEO of Jumia, noted that the company has decided to divert its capital resources to other ventures within the company, stating,

Food delivery remains a business with very challenging economics, in Africa and across the world, and we want to focus our efforts on our physical goods e-commerce business, in the eleven markets where we operate. This is a matter of prioritization of opportunities, and expected return on investment,” he said.


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