JUST IN: Shoprite to Close Abuja Branch by June 30

Shoprite Mall has announced its decision to shut down operations at its Abuja branch located in Novare Central Mall, Wuse Zone 5, effective June 30, 2024.

The announcement came through a circular signed by Dr. Folakemi Fadahunsi, CEO of Retail Supermarkets Nigeria Limited, which operates the Shoprite chain in Nigeria. The circular, obtained by our correspondent on Monday, cited a comprehensive review of the branch’s financial performance and the prevailing business environment as reasons for the closure.

A staff member, who preferred anonymity, confirmed the news, stating, “Yes, it is true, we just heard it here too.”

According to the circular, the decision impacts vendors as well, with Shoprite notifying them that their services will no longer be required at the Wuse store beyond the closure date.

“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,” the circular stated.

Furthermore, the company indicated it would settle outstanding balances with vendors within the next 60 days following a review of accounting records.

The closure of multinational companies from Nigeria has been a growing trend, impacting the economy significantly. Recent examples include the sale of Diageo’s stake in Guinness Nigeria and the exit of several other major firms over the past few years.

This move by Shoprite adds to the ongoing narrative of multinational exits, raising concerns about Nigeria’s business environment and its attractiveness to foreign investors.