Business

 Shoprite To Close Down Wuse Branch In Abuja Due To Economic Challenges

Shoprite on Monday said it was shutting down one of its branches, Novare Central Mall, Wuse Central, Abuja, from June 30, 2024, blaming the current harsh economic climate for the decision.

In a circular signed by the Chief Executive Officer, Dr Folakemi Fadahunsi, on behalf of the retail supermarket, the popular mall said it came to the conclusion after a thorough evaluation of the store’s financial situation.

It  notified vendors that their services would no longer be needed at the store, stressing that it will be reviewing its accounts with them in the next 60 days, with a view to reconciling any outstanding balances.

“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 organisation’s long-term growth.

“Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store,” the circular stated.

The latest development is coming about six months after Shoprite Mall in Kano similarly stopped operations in its branch from January 14, 2024.

Likewise, the popular Kano mall attributed its decision to financial difficulties and high production costs confronting business establishments in the country in a circular made available at the time.

It also came on the heels of an announcement by Jumia Food to cease operation in Nigeria, citing growing economic challenges.

“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.

“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us,” it added on the latest incident.

A number of firms in the country, especially multinationals have recently completely left Nigeria,  scaled down operations, transferred ownership or sold their stakes.

Among them in recent times have been Diageo, which sold its 58.02 per cent shareholding in Guinness Nigeria to Tolaram, Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, and Bolt Food & Jumia Food Nigeria.

Some others are: Microsoft Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clerk Nigeria, among others.

Nigeria is battling the impact of a weakening local currency, the effect of the ‘removal’ of petrol subsidy as well as skyrocketing energy prices, including electricity, diesel and gas costs, which have more than doubled in the last one year of the current administration.

Emmanuel Addeh

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