Popular retail giant, ShopRite Mall, has announced its decision to cease operations at its Ade Bayero branch in Kano State, Northwest Nigeria in January.
The management of the mall made this announcement in a circular which was obtained by Nairametrics.
According to the Circular, the current financial situation of the mall in the state and the challenging business climate in the country are the primary reasons for the closure.
This is coming just few hours after popular food delivery service, Jumia Food announced that they will be ceasing operations in Nigeria by the end of the year due to economic challenges and the high cost of operation in the country which has caused them to make very little or no profit.
Shoprite’s circular regretfully states that the closure will be effective from 14th January, 2024.
It was also clearly stated that all employees at the Kano branch will be laid off upon the cessation of operations.
However, the company is assuring its employees that it will support them during the transitional period and encouraging them to apply for vacant positions in other existing stores across the country through the Human Resources department.
The circular further notes that Shoprite will be opening new branches in other parts of the country, and laid off employees are welcome to apply for jobs in these upcoming stores.
This is however suggesting a shift in focus for the company amid the changing economic landscape.
The decision to close the Kano branch comes as profitability remains a major challenge for many players in Nigeria’s retail market.
The increasing operational costs and mounting inflationary pressure have contributed to a challenging economic environment, forcing several companies, both large and small, out of the market.
The closure of both Shoprite in Kano and Jumia Food underscores the complex economic realities faced by businesses operating in Nigeria.