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Shoprite Nigeria unveils bold growth plan amidst Kano store closure

Retail giant outlines a two to five-year expansion strategy while navigating challenging economic landscapes in Nigeria

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In a strategic move reflecting its confidence in the Nigerian market, Retail Supermarket Nigeria Limited (RSNL), operating as Shoprite Nigeria, has announced the imminent closure of its Ado Bayero Store in Kano from January 14, 2024. Simultaneously, the retail chain unfolds an ambitious two to five-year growth plan, aiming to open four outlets annually across the country.

Shoprite’s Chief Executive Officer, Hubertus Rick, outlined the company’s vision in a statement issued in Lagos on Friday, January 12, 2024. Rick emphasized the proactive approach of closing underperforming stores in response to tightening consumer economies while steering towards robust expansion guided by reliable retail market research.

The announcement comes with the optimistic news of ongoing store reopenings across various locations, including Circle Mall in Lekki, Garden City Mall in Port Harcourt, Galaxy Mall in Kaduna, and Shoprite Benin. Particularly noteworthy is the reopening of the Circle Mall store in Lekki, signaling the brand’s resilience after being razed during the End SARS protests in October 2020.

Rick cited factors such as consumer buying power, high operational costs, rental expenses, and ethical commitments for the decision to close the Kano outlet temporarily. He clarified that the non-renewal of rent at the Ado Bayero store was prompted by its negative financial performance and the prevailing business climate.

Expressing understanding of the potential impact on employees and the community, Rick stated, “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.” Importantly, Rick reassured that the decision does not signify a permanent withdrawal from Kano, expressing optimism for a future return when the business environment is more favorable.

Addressing the concerns of affected employees, Rick pledged support during the transition period. The company plans to assist affected workers in finding new opportunities within the organization and encourages them to apply for vacant positions in existing stores or upcoming outlets. Rick praised the dedication of Shoprite’s employees and promised to ensure a seamless transition with detailed information on severance packages in the upcoming days.

Despite current challenges faced by retail businesses in Nigeria, Shoprite affirms its commitment to the Nigerian market, expressing confidence in the Federal Government’s economic policy options to create an enabling environment for sustained growth in the retail sector.

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