Shoprite Nigeria To Close Abuja Mall By June 30

Retail Supermarkets Nigeria Limited (RSN), the operator of the country’s major supermarket chain, Shoprite Nigeria, will close its Wuse, Abuja mall at the end of June.

The recent move by RSN, which is controlled by Ketron Investment Limited, an investment firm managed by Nigerian businessman Tayo Amusan, comes in the midst of a hard macroeconomic environment, declining profit margins, and growing operational costs.

at a circular signed by Chief Executive Officer Folakemi Fadahunsi, RSN announced that the Wuse store at Novare Wuse Central Mall would close on June 30, 2024. The decision comes after a thorough examination of the store’s financial performance.

“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,” according to a statement. “This decision was made after careful consideration of the store’s financial status and the present business environment. We feel that this is the greatest course of action for our company’s long-term future.”

RSN also informed vendors that their services would no longer be needed at the Wuse facility. The company will analyze its financial records over the next 60 days and contact vendors to discuss any outstanding payments and an acceptable payment schedule.

The shutdown of Shoprite’s Abuja outlet illustrates the continued challenges for businesses in Nigeria. In June 2020, Shoprite Nigeria reported $125 million in assets and $140 million in liabilities. Many enterprises have experienced reduced profit margins and increased operational costs as a result of the country’s tough financial situation.

Diageo Plc proposes to sell its 58.02 percent ownership in Guinness Nigeria Plc. Kimberly Clark, a diaper manufacturer, is to close its Lagos production site after investing $100 million two years ago.

In December, Procter & Gamble (P&G) announced that it would discontinue its on-ground presence in Nigeria and instead import products due to the harsh business environment and problems in creating US dollar value.

Ketron Investment acquired RSN from South Africa’s Shoprite Holdings three years ago. It is part of an expanding business empire led by Nigerian tycoon Tayo Amusan.

Ketron Investment is a wholly-owned subsidiary of the Persianas Group, a renowned developer of luxury residential, retail, entertainment, and hospitality facilities, as well as commercial buildings in Nigeria.

Persianas Group and the Nigerian Sovereign Investment Authority have unveiled a $100-million project for a 12,000-capacity stadium on Victoria Island in Lagos. The cutting-edge complex, known as “The Arena,” aspires to be Nigeria’s premier entertainment and sports destination.

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