Shoprite closes store in Kenya amid plans to exit Nigeria

Shoprite, Africa’s largest food retailer, will close another Kenyan store leading to a job loss for 115 staff, according to CGTN Africa.

In a letter said to have been addressed to the Kenyan Union of Commercial Food and Allied Workers (KUCFAW), Shoprite said it will close its City Mall store in Nyali, Mombasa area of the country.

This comes less than a year after the retail shop was opened in that area.

The company linked its decision to close the store to “redundancy”, adding that trading would stop before the end of August.

“It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020,” Shoprite was quoted to have said.

“There are currently 115 persons employed at the branch of which 92 are members of KUCFW.”

The closure of the Nyali store, which opened on August 29, 2019, will leave two in Kenya.

The company said it was evaluating all of its operations across Africa “based on current and future performance”.

“It is unfortunate that we have no alternative but to terminate the employment of the valued employees that have helped to establish this store. The decision was not taken lightly,” it said.

Shoprite opened its first supermarket in Kenya at the Westgate Mall in Nairobi in December 2018.

In April, the company closed one of its stores in Nairobi, and laid off all staff, citing a significant reduction in the number of shoppers coming in since the COVID-19 pandemic hit Kenya.

On Monday, Shoprite announced that it is planning to exit the Nigerian market after posting continuous decline in sales from its operations.

In a trading update filed at the Johannesburg Stock Exchange (JSE), the retail giant said it has begun the formal process of liquidating its majority share.

The company posted a sharp decline in sales of 6.3 percent in the 2020 fiscal year.

The retailer, which launched in Nigeria nearly 15 years ago, opened its first store in Lagos in December 2005.

That chain has grown from one to more than 25 retail stores across Nigeria — including some of the biggest retail stores in west Africa.