• Sunday, February 25, 2024
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Shoprite closes Kano Store over harsh economy, poor purchasing power

Shoprite closes Kano Store over harsh economy, poor purchasing power

Retail Supermarket Nigeria Limited, operating as Shoprite Nigeria, has said that it is closing it’s Kano store located at Ado Bayero.

The company sites consumer buying power, high cost of doing business, rental cost and its ethical commitment amongst the reasons for the decision to close the Kano outlet.

In a statement, signed by company’s Chief Executive Officer, Hubertus Rick, Shoprite also revealed that the reason for its non-renewal of the rent at the Ado Bayero store is the store’s negative financial performance and the general business climate.

Rick also clarified that the decision was not made lightly, as the company understands the impact it may have on its employees and the community.

He however said, “after careful evaluation of the financial situation of the store and the current business climate, Shoprite believes it is the best course of action for the long-term growth of our organization.”

He also emphasised that the decision does not imply that Shoprite will not do business in Kano when the business environment becomes favourable as Kano is a big city with room for a Shoprite concept.

Rick however assures of plans by the company to assist employees who may be affected by the difficult decision saying, “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 transition 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.”

She assured that as the company navigates this transition with the affected workers, it 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 vital details,” she added.

Rick further said , “while we will close down stores that are performing sub-optimally as the consumer economy tightens, we plan to open four new outlets annually across the country guided by what reliable retail market research tells us”

The locations for new stores include Circle Mall, Lekki, Garden City Mall Port Harcourt and Galaxy Mall, Kaduna and Shoprite Benin, it said.

Despite the current challenges faced by retail businesses in Nigeria, the company has pledged its long-term commitment to remain in Nigeria while expressing confidence that the economic policy options currently pursued by the Federal Government will yield long term results that will provide the enabling environment for the retail business to thrive in Nigeria.