We’ll return to Kano when business climate becomes favourable, says Shoprite

Retail Supermarket Nigeria Limited (RSNL), operator of Shoprite Nigeria, says its exit from Kano is only temporary as it plans to return to the state when the business environment becomes favourable.

The retail giant spoke in a statement on Wednesday, announcing the official closure of its Ado Bayero store in Kano, which took effect on January 14, 2024.

Shoprite had earlier hinted at the exit plans in December 2023, citing its abysmal financial performance and “general business climate” in the state.

“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,” said Hubertus Rick, chief executive officer (CEO) of RSNL.

Rick also cited consumer buying power, the high cost of doing business, rental costs and the company’s ethical commitment as the reasons that led to the closure of the Kano outlet “in the meantime”.

He said the decision does not imply that Shoprite will not do business in Kano when the business environment becomes favourable, noting that “Kano is a big city with room for a Shoprite concept”.

Empathising with staff who will bear the brunt of the firm’s decision, Rick assured of the organisation’s plans to assist employees who may be affected by the difficult decision.

“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,” he said.

“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

“In the upcoming days and weeks, we will provide you with more information regarding severance packages and other vital details.”

RSNL TO OPEN FOUR NEW STORES ANNUALLY

Aside from the unpalatable development for workers, Shoprite also hinted at its growth plan for the Nigerian retail market.

According to the statement, while Kano operations have come to a halt, Shoprite mulls a bullish two to five-year growth plan to open four outlets annually across the country.

“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,” Rick said.

RSNL said it has also commenced some store reopening across different locations expected to span “across the outgoing year 2023 right into 2024. The locations included Circle Mall, Lekki, Garden City Mall Port Harcourt and Galaxy Mall, Kaduna and Shoprite Benin”.

This, the firm said, is a bold expression of its confidence in the Nigerian market and the Nigerian people.

Meanwhile, checks by TheCable show that some of the listed stores above have been operating since 2022 and 2023.

TheCable.