Shoprite, the South African retail giant, has announced the closure of its Wuse Central Mall store in Abuja, Nigeria. The closure, effective June 30th, 2024, comes after a “thorough evaluation of the store’s financial situation and the current business climate,” according to a statement from the company.
“We believe this is the best course of action for our organization’s long-term growth,” stated Dr. Folakemi Fadahunsi, the CEO of Retail Supermarkets Nigeria Limited, which operates Shoprite stores in the country.
In addition, the statement expresses regret for the closure and its impact on business partners. Existing service contracts for the Wuse store will also be terminated as of June 30th.
It reads, “This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate.”
“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.”
“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.”
What’s next for Shoprite?
The news comes as a blow to shoppers in Abuja who have come to rely on Shoprite for its wide selection of groceries and household goods. It’s unclear at this time what impact this closure will have on other Shoprite locations in Nigeria.
The closure will impact not just shoppers in the area but also businesses that provide services. Specifically to the Wuse Central Mall location.
Shoprite’s exit from Wuse Central Mall marks the latest instance of the retail chain scaling back its operations in Nigeria. The company announced its intention to gradually exit the Nigerian market altogether in 2020, citing unfavorable market conditions.
This closure will undoubtedly affect the local community and raise questions about the future of Shoprite’s remaining stores in Nigeria. The company has yet to comment on the fate of its other locations.
The statement in full.
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