Shoprite closes Kano store and announces 2-5 years of bullish growth for Nigeria

Retail Supermarket Nigeria Limited (RSNL), also known as Shoprite Nigeria, has revealed intentions to shut its Ado Bayero Store in Kano on January 14, 2024, just as it hinted at the retail chain’s two to five-year aggressive expansion strategy for the Nigerian market.

While the Kano shop remains closed, Shoprite is considering a bullish two to five-year expansion strategy that includes opening four outlets per year across the country as a strong demonstration of faith in the Nigerian market and people.

In a statement issued in Lagos, Friday, 12 January, 2024 and signed by company’s Chief Executive Officer, Hubertus Rick, the company disclosed that, “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.” 

Aside from the scheduled shop closure, Retail Supermarkets Nigeria Limited has begun certain store reopenings in various areas, which are projected to last through the end of 2023 and into 2024.

The destinations included Circle Mall in Lekki, Garden City Mall in Port Harcourt, Galaxy Mall in Kaduna, and Shoprite in Benin. 

 Shoprite has also showed the brand’s durability by reopening its outlet at Circle Mall in Lekki years after it was severely destroyed during the End SARs demonstrations in October 2020.

The company cites customer buying power, the high cost of doing business, leasing costs, and its ethical commitment as reasons for closing the Kano location in the meantime.

Shoprite further stated that the reason for the non-renewal of the rent at the Ado Bayero shop was the store’s poor financial performance and the wider business climate. Rick further highlighted that the decision was not taken lightly, as the corporation recognizes the potential impact on its employees and the community. He however stated, “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 stated that the decision does not mean that Shoprite would not conduct business in Kano if the business environment improves, since Kano is a large city with potential for a Shoprite model.

However, Rick emphasized of the company’s preparations to aid employees who may be affected by the difficult choice, adding,

 “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.” 

Rick applauded the dedication, hard work, and devotion of the company’s workers throughout the years, adding their efforts have been important, and Shoprite is grateful for the value they have contributed to the team. She promised that while the firm navigates this change with the impacted employees, it will make the process as smooth as possible for everyone concerned.  “In the upcoming days and weeks, we will provide you with more information regarding severance packages and other vital details,” she added. 

Despite the current challenges confronting Nigerian retail businesses, the company has pledged its long-term commitment to remain in Nigeria, expressing confidence that the Federal Government’s economic policy options will yield long-term results that will create an enabling environment for the retail industry to thrive in Nigeria.

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