Fatshimetrie, a retail giant in South Africa, recently announced the closure of its store located at Novare Wuse Central Mall in Abuja. This decision was communicated in a letter signed by its general director, Dr Folakemi Fadahunsi, on Monday June 24, 2024.
The company explained that closing this branch was the best strategy to adopt to ensure its long-term growth. In the letter, it is mentioned: “We regret to inform you that with effect from June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse store located in Novare Wuse Central Mall, Abuja. This decision was taken after a careful assessment of the store’s financial situation and the current business climate. We believe this is the best decision to ensure the long-term growth of our organization.”
“From June 30, 2024, our business will no longer operate in Wuse, Abuja, and we will no longer require your services for the store at Novare Wuse Central Mall. Please note that all existing service contracts will also end for the shop.”
“If your services are specifically related to the Novare Wuse Central Mall store and there is an outstanding balance between our businesses, we will carefully review our accounting records over the next 60 days. We will then contact you promptly to confirm the amount owed and discuss an appropriate payment schedule.”
“We would like to express our gratitude for your past business. It has been a pleasure working with you and your team. If you have any questions or concerns, or if we can help you during this delicate transition, please do not hesitate to contact us contact.”
The decision to close the store in Abuja follows the closure of the Kano branch six months earlier, due to “financial difficulties and high production costs currently plaguing business establishments in the country.”
It is worth noting that in August 2020, Shoprite announced its decision to end its operations in Nigeria. This new closure is part of the difficult economic context the country is going through, leading many multinational companies to leave the country, reduce their activities or sell their shares.
In conclusion, Shoprite’s cessation of operations in Abuja highlights the challenges faced by many businesses in a complex economic environment. The move reflects the financial pressures and operational challenges many businesses in Africa are facing due to the current economic environment.