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HomeCompany NewsSouth African retail giant Shoprite announces closure of Abuja Store, citing economic...

South African retail giant Shoprite announces closure of Abuja Store, citing economic strain

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Shoprite, the dominant South African grocery chain, is shuttering its doors at the Novare Wuse Central Mall in Abuja, Nigeria, effective June 30th, 2024.

A statement on Monday by the firm stated that this surprise closure comes after the company conducted a “thorough evaluation” of the store’s financial performance and Nigeria’s current business climate.

According to a notification sent to business partners, the decision reflects a strategic move to ensure “long-term growth” for the organization.

The closure will also impact vendors and service providers currently contracted with the Wuse store, as all existing service agreements will be terminated alongside the store’s operation.

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Shoprite did acknowledge the impact on its partners and expressed gratitude for their past business.

The notification also included a clause reassuring vendors of a swift review of outstanding balances within the next 60 days, followed by discussions on a suitable payment schedule.

This news comes amidst a backdrop of economic unease in Nigeria. The recent closure adds to concerns about the viability of foreign-owned businesses operating within the country.

While the specific reasons behind the challenging business climate haven’t been disclosed by Shoprite, it raises questions about the future of other international retailers in Nigeria.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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