Shoprite to close Abuja branch June 30
Shoprite Mall has stated that one of its Abuja locations would discontinue operations on June 30, 2024.The branch is located at Novare Central Mall, Wuse Zone 5.
This was stated in a circular signed by the retail supermarket's CEO, Dr. Folakemi Fadahunsi, which our correspondent got on Monday.
A store employee who requested anonymity corroborated the news, stating, "Yes, it is true, we just heard it here too."
The famous mall ascribed its decision to a careful examination of the store's financial status and the present business environment.
It also told merchants that their services would no longer be required at the store.
The circular read, "We regret to inform you that Retail Supermarkets Nigeria Limited will close its Wuse Store in Novare Wuse Central Mall, Abuja, on June 30, 2024." This decision was made after careful consideration of the store's financial status and the present business environment. We feel that this is the best strategy for our organization's long-term growth.
"Effective June 30, 2024, our company will cease operations in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store." Please be aware that all existing service contracts for the store will be terminated."
The circular further stated that the corporation would be evaluating its accounting records in the next 60 days to clear overdue accounts.
"If your services are directly related to the Novare Wuse Central Mall Store and there is an outstanding balance between our firms, we will carefully evaluate our accounting records over the following 60 days (approximately 2 months). We will then contact you to confirm the amount outstanding and establish an appropriate payment plan.
"We'd want to offer our appreciation for your prior business. It has been a pleasure to work with you and your staff. If you have any questions or concerns, or if there is anything we can do to help you through this difficult transition, please do not hesitate to contact us, it added.
Multiple international corporations have exited Nigeria by reducing operations, transferring ownership, or selling holdings, the most recent being the sale of beverage major Diageo's 58.02 percent stake in Guinness Nigeria to Tolaram Group on June 11, 2024.
According to Dr Vincent Nwani, an economist and former Director of Research and Advocacy at the Lagos Chamber of Commerce and Industry in Nigeria, the migration of multinationals from the Nigerian economy has cost the country N94 trillion in lost output over the last five years.
According to the analyst, more than ten companies would cease operations in 2020, including Standard Biscuits Nigeria Ltd, NASCO Fibre Product Ltd, Union Trading Company Nigeria PLC, and Deli Foods Nigeria Ltd.
In 2021, he reported that over 20 companies had exited, including Tower Aluminium Nigeria PLC, Framan Industries Ltd, Stone Industries Ltd, Mufex Nigeria Company Ltd, and Surest Foam Ltd.
He stated that in 2022, around 15 well-known brands would leave Nigeria, including Universal Rubber Company Ltd, Mother's Pride Ventures Ltd, Errand Products Nigeria Ltd, and Gorgeous Metal Makers Ltd.
More than ten large companies left in 2023, including Unilever Nigeria PLC, Procter & Gamble Nigeria, GlaxoSmithKline Consumer Nigeria Ltd, ShopRite Nigeria, Sanofi-Aventis Nigeria Ltd, Equinox Nigeria, and Bolt Food & Jumia Food Nigeria.
In the first six months of this year, five publicly traded firms departed Nigeria: Microsoft Nigeria, Total Energies Nigeria (due to its divestiture), PZ Cussons Nigeria PLC, Kimberly-Clerk Nigeria, and Diageo PLC.
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