Shoprite Mall has announced the closure of its Abuja branch located at Novare Central Mall in Wuse Zone 5, effective June 30, 2024. This decision comes after a thorough evaluation of the store’s financial situation and the prevailing business climate.
Reason for Closure
The closure is attributed to the challenging financial situation and business climate in Nigeria. The company has expressed gratitude to its vendors and staff, acknowledging the difficulties this decision may cause.
Impact on Vendors and Staff
The closure will result in the termination of services for vendors, and all existing service contracts tied to the Novare Wuse Central Mall Store will end on June 30, 2024. However, the company has assured vendors that it will review its accounting records over the next 60 days to settle any outstanding balances.
Trend of Multinational Companies Leaving Nigeria
This closure is part of a larger trend of multinational companies scaling down operations, transferring ownership, or exiting Nigeria altogether.
Recent examples include Diageo’s sale of its 58.02% stake in Guinness Nigeria to Tolaram Group and the departure of other notable companies like Unilever Nigeria PLC and Procter & Gamble Nigeria.
Economic Impact
The exit of multinational companies has significantly impacted Nigeria’s economy, resulting in losses amounting to N94 trillion in output over the past five years.
