Shoprite, a leading retail giant, has announced its intention to discontinue operations at its Kano State branch from January 14, 2024. This decision mirrors the actions of Procter & Gamble and other multinational corporations that have chosen to withdraw their operations from the region.
The company released a circular on Thursday attributing its decision to the financial hardships and elevated production costs that businesses in the country are currently grappling with.
This announcement follows closely on the heels of Jumia Food's recent declaration to halt its operations in Nigeria by the end of this month, a decision driven by escalating economic difficulties.
In the circular, Shoprite expressed regret over the decision but deemed it necessary. The company also indicated that all employees at the mall would be let go once it ceases operation in the state.
The circular read, "I regret that our store in Ado Bayero Mall, Kano, will close 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 store’s financial situation and the current business climate, we believe that it is the best cause of action for the long-term growth of our organisation. We understand that this news may be difficult to digest. We assure you 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 position in our existing store across the country through the Human Resources department."
In recent news, Procter & Gamble, a multinational consumer company, announced plans to exit Nigeria just a week ago. Similarly, GlaxoSmithKline Consumer Nigeria Plc also declared its departure from Nigeria.
In response to these developments, the Manufacturers Association of Nigeria (MAN) suggested that more firms might shut down operations due to the harsh economic realities in Nigeria.