Shoprite Mall has announced that it would be closing one of its locations in Abuja on June 30, 2024. The branch is located in Wuse Zone 5 near Novare Central Mall.
This was reported in a memo that a correspondent from the Punch received on Monday and that was signed by the retail supermarket’s chief executive officer, Dr. Folakemi Fadahunsi. The allegation was also verified by a store employee who begged to remain anonymous, stating, “Yes, it is true, we just heard it here too.”
The popular mall justified its action by citing a careful analysis of the store’s financial status and the state of the industry. It also informed vendors that the store would no longer require their services.
The memo read, “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.”
In order to clear out outstanding amounts, the company would be fixing its financial records within the next sixty days, according to the memo.
“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”
A great number of multinational corporations have left Nigeria through the sale of their holdings, ownership transfers, or operations reductions. The beer company Diageo sold its 58.02 percent shareholding in Guinness Nigeria to Tolaram Group on June 11, 2024.
Dr. Vincent Nwani, who is a former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria and an economist, claims that the departure of these multinational corporations from the Nigerian economy has resulted in a N94 trillion loss of output in just years.
The analysis records that more than ten businesses, including Standard Biscuits Nigeria Ltd., NASCO Fiber Product Ltd., Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd., were suppose to cease operations in 2020.
He said that over 20 of these businesses had left in 2021, including Framan Industries Ltd., Stone Industries Ltd., Tower Aluminium Nigeria PLC, Mufex Nigeria Company Ltd., and Surest Foam Ltd.
According to him, more than fifteen popularly known brands—among them Universal Rubber Company Ltd., Mother’s Pride Ventures Ltd., Errand Products Nigeria Ltd., and Gorgeous Metal Makers Ltd. Had all left Nigeria in 2022.
In 2023, over ten significant corporations departed, including Unilever Nigeria PLC, Bolt Food & Jumia Food Nigeria, ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd, Unilever Nigeria PLC, and GlaxoSmithKline Consumer Nigeria Ltd.
In the first half of this year, Microsoft Nigeria, Total Energies Nigeria (due to its divestment), PZ Cussons Nigeria PLC, Kimberly-Clerk Nigeria, and Diageo PLC are the five listed significant firms that had departed Nigeria.
