By Harry Awurumibe, Editor, Abuja Bureau
The unfriendly economic climate in Nigeria has once again claimed another victim as Shoprite Mall has announced it would shut one of its Abuja branches effective from June 30, 2024.
The retail supermarket said in a circular issued by its chief executive officer, Folakemi Fadahunsi, that it took the decision after thorough evaluation of the store’s financial situation and the current business climate.
The affected branch is situated at Novare Central Mall in Wuse Zone 5.
The circular notified vendors that their services would no longer be needed at the store.
“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.
“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 read.
It further stated that the company would be reviewing its accounting records in the next 60 days to settle outstanding balances.
“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.
The closure of a branch of Shoprite in Abuja, the nation’s capital, is the latest in the exodus of firms from Nigeria.
Prompt News reports that in 2024 alone, five multinationals have left Nigeria including Microsoft Nigeria, PZ Cussons Nigeria PLC, Kimberly-Clerk Nigeria,
Total Energies Nigeria (affected by its divestment) and Diageo PLC.
Recall that several multinationals have left Nigeria by either scaling down operations, transferring ownership or selling their stakes, the most recent being the sale of beverage company Diageo’s 58.02 per cent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
The exodus of multinationals from the Nigerian economy has cost the country a N94tn loss of output in five years, according to an economists and capital market watchers. READ ALSO:
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According to the analysts, for the first year, over 10 companies shut down operations in 2020, most notably Standard Biscuits Nigeria Ltd, NASCO Fiber Product Ltd, Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd.
In 2021, he stated that more than 20 companies exited, including Tower Aluminium Nigeria PLC, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, and Surest Foam Ltd.
Also in 2022, over 15 known brands left Nigeria, including Universal Rubber Company Ltd, Mother’s Pride Ventures Ltd, Errand Products Nigeria Ltd, and Gorgeous Metal Makers Ltd.
More than 10 major companies left in 2023, notably Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, and Bolt Food & Jumia Food Nigeria.
