Economic Downturn: Shoprite closes store at Wuse Central Mall

The Retail Supermarket Nigeria Limited (RSNL), owner of Shoprite, has announced that it would cease operations at its Wuse store located in Novare Wuse Central Mall, Abuja from 30 June.

The company’s Chief Executive Officer, Folakemi Fadahunsi, said in a circular titled ‘Notification of Novare Wuse Central Mall, closure’ dated 21 June that the decision was made after a thorough evaluation of the store’s financial situation and the current business climate.

“We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse store located in Novare Wuse Central Mall, Abuja.

“This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organisation’s long-term growth,” the statement said.

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)

It said effective 30 June the company will no longer operate in Wuse, Abuja, and “we will no longer require your services for the Novare Wuse Central Mall Store.”

The statement noted that all existing service contracts will also terminate for the store.

“If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable payment schedule.

“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us,” the company said.

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)

Customers/workers react

When PREMIUM TIMES visited the store on Monday evening, this reporter noticed that some of the shelves in the store were empty. Some customers who spoke to this newspaper said they are not aware of the planned closure.

An official of the company who does not want his name in print as he was not authorised to speak on the issue told PREMIUM TIMES in an interview Monday evening said they were informed on Sunday about the matter, while noting that the company promised to give them some package for laying them off.

“They are supposed to tell us like a month or two as someone who works here right? But what they actually did was like telling us yesterday a week to the closure. And they told us that we only have one week, which to me, I don’t know for the others, is not right. Because they are supposed to give us one month’s notice.

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)

“We had a meeting yesterday but I was not in the meeting, but my colleagues actually spoke to the CEO and they said they are going to give us a package while laying us off. But the problem is we don’t know what the package is and they told us that they are going to close on 30 June. If we are not coming to work they will send us the package but what if that package is not going to be enough,” the official said.

He said workers are “part of a union that’s supposed to at least fight for their rights in the face of uncertainties”.

“So, if by 30th nobody’s going to come to the store again and we don’t know the package that they are giving us. But definitely, I believe it is cash. They told us it is the economic situation that is making them close up. So, if it’s an economic situation they are supposed to transfer us to another store. And if you want to lay us off they are supposed to give us something tangible because like close to 100 persons will be without jobs. And most of us are married people. We are hoping to see what they will give us. That is what we are waiting for right now.”

A customer, Gabriel Agwu, said there are other alternatives to shopping but the downside of the closure is that people will be out of jobs.

“On the downside. the number of employees who don’t know the plan, how many people will be out of job that will just be the downside to this decision but from the management part, we know that for sure it may be for them but there are alternatives to shopping but the employees that are going to be out of job, that’s just what we will really, really miss about ShopRite.

“I just got to know on Saturday that they are closing by the end of the month. As I came around to shop now, I noticed that they are trying to put most things on discounts and also lowering the price. As you can see, the mall is empty. The counters are empty, so they are not restocking. No bread today. The drinks are out. It’s real. I think now the closure is for real,” he said.

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)

Another customer, Amaka Okechukwu, said: “I was surprised to see all the shelves empty. I was even asking one of the workers why everywhere is empty like this and she said the store is closing down by the end of the month.”

READ ALSO: Court stops sale of Novare/Shoprite malls in Nigeria

The closure of the store reinforces the cost of living crisis that has made the Nigerian business environment unfriendly for businesses and investors.

Since the nation announced the removal of a costly fuel subsidy and unification of its multiple exchange windows last year, Nigerians have had a hard time meeting basic economic needs.

Amid sky-high inflation and unprecedented food crisis, many households now struggle to meet up with basic needs, with ripple effect on the operations of businesses and retail outlets.

More Pictures:

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)

Some of the shelves in the store were empty.Shoprite closes store at Wuse Central Mall
(PHOTO CREDIT: Mary Izuaka)