Shoprite To Close Operations At Kano’s Bayero Mall Over Nigeria’s Bad Market

The Retail Supermarkets Nigeria Limited (RSNL), operator of the Shoprite franchise in Nigeria has announced the closure of its Ado Bayero Mall Store, Kano, Kano State Northwest Nigeria from January 14, 2024.

A closing announcement dated December 7, 2023, signed by Mubertus Rick for the company, said the decision to close the store was taken after careful evaluation of its financial situation and the current business climate.

Titled: “Ado Bayero Mall Store Closing Announcement,” the announcement addressed to employees reads: “I regret to inform you that our Stores in Ado Bayero Mall, Kano, Kano State will be closing its doors on January 14, 2024. This decision was not made lightly, as we understand the impact it may have on our employees and the community.

“However, after careful evaluation of the financial situation of the store and the current business climate, we believe it is the best course of action for the long-term growth of our organization.

“We understand that this news may be difficult to digest, and we want to assure you that we are here to support you during this transitional period. Your well-being is our top priority, and we will do everything we can to assist you in finding new opportunities within our company.

“We encourage you to apply for any vacant positions in our existing stores across the country through the Human Resources department. Additionally, we will be opening new stores in the coming months, and you are welcome to apply for employment there as well.

“We deeply appreciate your dedication, hard work, and commitment to our company throughout the years. Your contributions have been invaluable, and we are grateful for the value you have brought to our team.

“As we navigate this transition, we will ensure that the process is as seamless as possible for everyone involved. In the upcoming days and weeks, we will provide you with more information regarding severance packages and other important details.

“Once again, we want to express our gratitude for your contributions to our company’s success. We hope that you will stay connected with us as we move forward. If you have any questions or require assistance, please don’t hesitate to reach out to me, the Chief Operating Officer, or our Head of Human Resources.”

According to information on its website, RSNL launched its first Nigerian store in Lagos in December 2005 and has expanded to 26 outlets across 14 states in the country. The company also has a 4,732-square-meter distribution centre in Lagos, which facilitates direct delivery from local farmers for Freshmark-Shoprite’s fruit and vegetable procurement and distribution arm.

In May 2021, Persianas Investment Limited, through an SPV, Ketron Investment Limited, completed the acquisition of RSNL from SHL to become the owner and operator of Shoprite stores in Nigeria.

In 2021, Ketron Investment Limited, a Nigerian company acquired RSNL, the owners of Shoprite Stores nationwide.

With approval from the Federal Competition and Consumer Protection Commission (FCCPC), Ketron acquired 100% ownership of Shoprite in Nigeria with prospects of opening additional stores to optimise visibility for the wide variety of Nigerian-made products as well as international brands.

SaharaReporters recently reported that Procter & Gamble (P&G), the world’s largest personnel care and household products company, makers of brands like Pampers, Gillette among others had announced its plans to transition from local production to solely importing its products as it winds down its on-ground presence in Nigeria.

Business Insider Africa reports that the American company stressed challenges in conducting business as a dollar-denominated organisation and attributed its strategic decision to the macroeconomic conditions in Nigeria.

A few months ago, a top global pharmaceutical giant, GlaxoSmithKline (GSK) wound down its operation in Nigeria. GSK remains a top global pharmaceutical manufacturer and has had 51 years of operations in Nigeria.