Retail Supermarkets Nigeria Limited (RSNL), the operational entity overseeing Shoprite franchises across Nigeria, has announced the forthcoming closure of its Ado Bayero Mall Store in Kano, Kano State, scheduled for January 14, 2024.
The decision, contained in a closing announcement signed by Mubertus Rick on December 7, 2023, signifies a strategic pivot following a comprehensive evaluation of the store’s financial status and the prevailing market dynamics.
In the addressed “Ado Bayero Mall Store Closing Announcement,” the company acknowledged the potential impact on employees and the local community. Rick expressed regret over the decision’s implications and assured support for the affected staff during the transition period.
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“We deeply regret the closure’s impact on our employees and the community. However, after careful assessment of our store’s financial position and the present business climate, we believe this is a necessary step for the sustainable growth of our organization,” stated Mubertus Rick, noting the company’s dedication to its employees and the community.
While emphasizing the commitment to facilitating smooth transitions for employees, the announcement encouraged staff to explore opportunities within the organization’s other operational outlets or consider employment in the new stores anticipated to open in the country.
“We are committed to supporting our employees during this transition. Their well-being is our priority, and we will assist in facilitating their smooth transition. We encourage affected staff to consider opportunities within our other outlets or upcoming stores,” assured Rick.
He said the company intends to open new stores in the coming months, urging affected staff to apply for employment there as well.
“We deeply appreciate your dedication, hard work, and commitment to our company throughout the years. Your contributions have been invaluable, and we are grateful for the value you have brought to our team,” he said.
“As we navigate this transition, we 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 important details.”
RSNL, since its inception in December 2005 with its debut store in Lagos, has expanded to encompass 26 outlets across 14 Nigerian states. The company operates a substantial distribution center in Lagos, spanning 4,732 square meters, facilitating direct procurement and distribution of fruits and vegetables through its Freshmark-Shoprite arm.
Shoprite’s strategic shift in Kano aligns with recent trends in Nigeria’s commercial landscape. Persianas Investment Limited’s acquisition of RSNL in May 2021, gaining approval from the Federal Competition and Consumer Protection Commission (FCCPC), marked a significant change in Shoprite’s ownership and operational management in Nigeria. This acquisition aimed to enhance the visibility of Nigerian-made products and international brands through additional store openings.
This strategic decision by Shoprite resonates with recent moves within Nigeria’s corporate ecosystem, including Procter & Gamble’s (P&G) shift from local production to importation due to operational challenges in a dollar-denominated environment and the country’s macroeconomic conditions. Furthermore, GlaxoSmithKline (GSK), a leading pharmaceutical giant, recently concluded its 51-year presence in Nigeria, mirroring the shifting landscape for multinational corporations in the region.
Shoprite’s impending closure in Kano stands as a testament to the evolving market dynamics in Nigeria that have impacted jobs, as the populous commercial nerve center in the northern part of the country is expected to be a lucrative destination for local retail stores.