RSNL, the Retail Supermarket Nigeria Limited (RSNL), known for operating Shoprite Nigeria, assures that its departure from Kano is merely a temporary measure. The company affirms its intention to resume operations in the state as soon as the business landscape becomes conducive. In an official statement made on Wednesday, the Retail behemoth declared the official closure of its Ado Bayero store in Kano State. This closure, which became effective on January 14, 2024, was officially communicated by the company.
In light of unsatisfactory financial performance and the overall business atmosphere in the state, Shoprite had previously alluded to its departure intentions, slated for December 2023. RSNL’s CEO, Hubertus Rick, asserts that Shoprite has thoroughly examined the store’s financial status and the prevailing business conditions, leading them to conclude that it is crucial to take this particular course of action to secure the organization’s long-term prosperity. Rick mentioned various factors that contributed to the temporary closure of the Kano outlet. These included the influence of consumer purchasing power, the substantial expenses associated with conducting business, the burden of rental costs, and the company’s strong dedication to ethical practices.
Shoprite acknowledges that accepting this news may present challenges.
While stating his opinion, he clarified that the decision should not be misconstrued as a complete withdrawal of Shoprite from Kano. Rather, he emphasized that the company will continue to consider conducting business in the city when the circumstances align favourably. Acknowledging the immense potential of Kano, he highlighted that its expansive nature provides ample space for implementing the unique Shoprite concept. Rick acknowledged the challenging decision and expressed his empathy towards the staff who would be most impacted by it.
He gave his assurance that the organization had devised plans to support and aid those employees who may face difficulties as a result of this decision. In light of this information, Shoprite acknowledges that accepting this news may present challenges, and they want to emphasize that they are fully committed to providing affected workers with all the necessary support during this period of change. Their Welfare is of utmost importance to the organization, and they will exert every effort to aid them in discovering fresh avenues for growth within the organization, he conveyed.
Affected workers should apply for vacant positions at new locations.
Hence, he urged them to kindly consider submitting their application for any available positions at the organization’s established stores nationwide, managed by the Human Resources department. Furthermore, they will soon be inaugurating fresh stores in the upcoming months. Hence, they extend an invitation for these workers to apply for employment opportunities at these new locations as well. Over the course of the forthcoming days and weeks, the organization shall furnish them with additional facts pertaining to critical details such as severance benefits.
More so, in addition to the unfavourable situation faced by employees, Shoprite also provided insights into its strategy for expansion within the Nigerian retail industry. The given statement suggests that although Kano operations have paused, Shoprite is considering an optimistic growth strategy for the next two to five years. This plan involves the opening of four new stores every year throughout the nation. Rick stated that despite the contraction of the consumer economy, the company aims to shut down underperforming stores while simultaneously introducing four fresh outlets every year nationwide, based on dependable data gathered from retail market research.
Reopening of several stores in various locations.
Additionally, RSNL has announced that it has initiated the reopening of several stores in various locations, with operations extending from last year all the way through 2024. Among the locations scheduled for reopening are Circle Mall in Lekki, Garden City Mall in Port Harcourt, Galaxy Mall in Kaduna, and Shoprite in Benin. The company confidently stated that this move is a fearless testament to their unwavering trust in both the Nigerian market and its resilient citizens. In the meantime, reports have shown that a number of the mentioned stores have been in operation since the years 2022 and 2023.
