Shoprite Mall, situated in Bayero Kano State, Northwest Nigeria, has declared its decision to discontinue operations in its Kano branch starting January 14, 2024, News About Nigeria reports.
The announcement was made through a circular released by the management of the retail supermarket on Thursday.
Citing the difficult business environment in the nation and the mall’s current financial burden, the circular explained the unfortunate but necessary action.
The decision follows closely on the heels of Jumia Food’s recent announcement of ceasing operations in Nigeria due to economic challenges.
The supermarket acknowledged the effects on staff and the community, adding that the decision was not made lightly.
When operations at the Kano branch end next year, all staff members will be laid off.
The circular encouraged affected employees to apply for vacant positions in other Shoprite stores nationwide.
The statement reassured affected staff of support during the transitional period and committed to prioritising their well-being.
The supermarket also disclosed plans to open new branches in different parts of the country, inviting employees in Kano to apply for positions in those upcoming stores.
The retail industry in Nigeria faces profitability challenges, grappling with rising operational costs and inflationary pressures. The closure of Shoprite Mall in Kano reflects the broader trend of businesses, both large and small, reassessing their viability in the current economic landscape.
Jumia Technologies AG (JMIA), a leading e-commerce platform in Africa, is also discontinuing its unprofitable food delivery service, Jumia Food.
The closure of Jumia Food is scheduled for the end of December 2023 and follows a comprehensive strategic review.
The CEO, Francis Dufay, attributed the closure to the challenging economics of food delivery in Africa and the need to focus on the company’s e-commerce business.
