Shoprite announces closure of Kano branch amidst economic challenges

In a recent circular released on Thursday, Shoprite revealed its decision to cease operations at its Kano State branch starting from January 14, 2024. The company cited financial difficulties and escalating production costs as the primary factors influencing this move, aligning with a trend observed among various multinational corporations facing economic challenges in Nigeria.

This decision follows closely on the heels of Jumia Food’s announcement to conclude its operations in Nigeria by the end of the month, attributing the decision to the prevailing economic adversities.

Expressing regret in the circular, Shoprite emphasized the necessity of this decision, given the financial status of the store and the current business climate. The company acknowledged the potential impact on employees and the local community, assuring support during this transitional period.

The circular outlined that the closure would result in the termination of employment for all staff members at the Ado Bayero Mall, Kano. Shoprite, however, expressed commitment to assist employees in finding new opportunities within the organization, encouraging them to apply for vacant positions in other existing stores nationwide through the Human Resources department.

The closure announcement from Shoprite follows the recent decisions by Procter & Gamble and GlaxoSmithKline Consumer Nigeria Plc to exit the Nigerian market. With the Manufacturers Association of Nigeria hinting at the possibility of more firms shutting down operations due to the challenging economic conditions, this trend raises concerns about the sustainability of businesses in Nigeria.