Avalanche of the hard economic climate is telling hard as more Nigerians now abandon retail shopping in supermarket, where they cannot bargain. Residents in Kano, one of Nigeria’s largest commercial city are reacting to the crisis and have abandon Retail Supermarket Nigeria Limited, operating as Shoprite Nigeria.
The company, consequently have closed its Ado Bayero Store in Kano from January 14, 2024.
.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.”
The company sites consumer buying power, high cost of doing business, rental cost and its ethical commitment amongst the reasons for the decision to close the Kano outlet in the meantime.
Shoprite also revealed that the reason for its non-renewal of the rent at the Ado Bayero store is the store’s negative financial performance and the general business climate. Rick also clarified that the decision was not made lightly, as the company understands the impact it may have on its employees and the community.
He however said, “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 emphasised that the decision does not imply that Shoprite will not do business in Kano when the business environment becomes favourable as Kano is a big city with room for a Shoprite concept.
He said that staff of the company can still apply for post in other outlets across Nigeria and thank the staff for contributions toward the company.