Shoprite has announced its decision to cease operations in its Kano State branch starting from January 14, 2024, following the footsteps of Procter & Gamble and other multinational companies facing economic challenges in Nigeria.
In a circular released on Thursday, the company cited financial difficulties and high production costs as reasons for its withdrawal from the Kano market. This decision aligns with the recent trend of multinational companies reevaluating their presence in Nigeria due to economic challenges, as demonstrated by Jumia Food’s announcement of ceasing operations in the country by the end of the month.
The circular from Shoprite stated that the closure is regrettable but deemed necessary for the long-term growth of the organization. The company acknowledged the potential impact on employees and the community, revealing that all employees at the Ado Bayero Mall in Kano will be laid off once the operation ceases.
“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 course of action for the long-term growth of our organization.
“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,” the circular read.
This move follows the recent exit announcements from Procter & Gamble and GlaxoSmithKline Consumer Nigeria Plc. The Manufacturers Association of Nigeria (MAN) suggests that more companies may consider shutting down operations due to the challenging economic conditions in the country.”