ICYMI: ‘Current business climate’ — Shoprite to close Kano store January 2024

Shoprite Nigeria, a food retailer, has announced plans to close up its store in Ado Bayero Mall, Kano, on January 14, 2024.

This was contained in a statement dated December 7, 2023, and signed by Hubertus Rick, chief executive officer (CEO) of Retail Supermarket Nigeria (RSN), which operates as Shoprite.

Retail Supermarket said it understands the impact on its employees, but cannot continue due to the “current business climate”.

“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 it is the best course of action for the long-term growth of our organisation,” the company said.

“We understand that this news may be difficult to digest, and 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 positions in our existing stores across the country through the human resources department.” 

Rick also said plans are underway to open new stores in the coming months, adding that old staff  “are welcome to apply for employment there as well”.

“We deeply appreciate your dedication, hard work, and commitment to our company throughout the years. Your contributions have been invaluable, and we are grateful for the value you have brought to our team’” he said.

“As we navigate this transition, we will ensure that the process is as seamless as possible for everyone involved. In the upcoming days and works, we will provide you with more information regarding severance packages and other important details.”

Meanwhile, according to a source who confirmed the situation to TheCable, the store plans to close down due to low business patronage and, a hike in rent. 

Also confirming the closure, another source said the firm intends to move to Kaduna to continue its operations.

The development is coming amidst a recent judgement passed at a federal high court in Abuja.

Novare Investment Ltd, owners of  Shoprite Malls in Nigeria, was restrained by the court from selling off their assets in the country.

This is the latest development in the lingering legal battle between the South African management of Novare Investment Limited and its Nigerian partners, following its plans to divest from the country.