Retail Supermarket Nigeria Limited (RSNL), operating as Shoprite Nigeria has announced plans to close its Ado Bayero Store in Kano from January 14, 2024, just as it hinted of the retail chain’s two to five-year bullish growth plan for the Nigerian market.
While resting the Kano outlet, Shoprite optimistically mulls a bullish two to five-year growth plan to open four outlets annually across the country as bold expressions of its confidence in the Nigerian market and the Nigerian people.
In a statement by company’s Chief Executive Officer, Hubertus Rick, the company disclosed that, “while we will close down stores that are performing sub-optimally as the consumer economy tightens, we plan to open four new outlets annually across the country guided by what reliable retail market research tells us.”
Aside the planned store closure and on a brighter note, Retail Supermarkets Nigeria Limited has also commenced some store reopening across different locations expected to span across the outgoing year 2023 right into 2024.
The locations included Circle Mall, Lekki, Garden City Mall Port Harcourt and Galaxy Mall, Kaduna and Shoprite Benin. Shoprite has also demonstrated the resilience of its brand with the audacious restoration of its store at Circle Mall, Lekki, to business years after it was completely raised during the End SARs protests in October 2020.
The company sites consumer buying power, high cost of doing business, rental cost and its ethical commitment amongst the reasons for the decision to close the Kano outlet in the meantime.
Shoprite also revealed that the reason for its non-renewal of the rent at the Ado Bayero store is the store’s negative financial performance and the general business climate. Rick also clarified that the decision was not made lightly, as the company understands the impact it may have on its employees and the community. He however said: “After careful evaluation of the financial situation of the store and the current business climate, Shoprite believes it is the best course of action for the long-term growth of our organization.”
He also emphasised that the decision does not imply that Shoprite will not do business in Kano when the business environment becomes favourable as Kano is a big city with room for a Shoprite concept.
Rick, however, assures of plans by the company to assist employees who may be affected by the difficult decision saying, “We understand that this news may be difficult to digest, and we want to assure you that we are here to support you during this transition period. Your well-being is our top priority, and we will do everything we can to assist you in finding new opportunities within our company.
“We encourage you to apply for any vacant positions in our existing stores across the country through the Human Resources department. Additionally, we will be opening new stores in the coming months, and you are welcome to apply for employment there as well.”
Rick praised the dedication, hard work, and commitment of the employees of the company throughout the years saying their contributions have been invaluable while expressing Shoprite’s gratitude for the value they have brought to the team. She assured that as the company navigates this transition with the affected workers, it will ensure that the process is as seamless as possible for everyone involved. “In the upcoming days and weeks, we will provide you with more information regarding severance packages and other vital details,” she added.
Despite the current challenges faced by retail businesses in Nigeria, the company has pledged its long-term commitment to remain in Nigeria while expressing confidence that the economic policy options currently pursued by the Federal Government will yield long term results that will provide the enabling environment for the retail business to thrive in Nigeria.
Customs, others shared N54bn in November from FAAC
Revenue generating agencies, Nigeria Customs Service, Federal Inland Revenue Service and Nigerian Upstream Petroleum Regulatory Commission shared N53.5billion as cost of revenue collection in November.
The Federation Account Allocation Committee disbursed the sum of N1.35trillion to the three tiers of government in November 2023 from the total revenue generated in October 2023, according to data released by the National Bureau of Statistics.
Breakdown of allocations to the three tiers of government in the review period shA breakdown the Federal Government received a total of N323.35bn while the 36 States including the Federal Capital Territory shared N307.72bn which comes to an average of N8.32bn while the 774 Local Governments in the country shared N225.21bn, amounting to an average of N291m.
The amount disbursed comprised N660.09bn recorded from the Statutory Account, N262.89bn from Exchange Gain, N60.00bn from Non-Oil Revenue, N16.20bn from Electronic Money Transfer Levy, and N347.34bn from Value Added Tax.
The nine oil-producing states shared N50.67bn from the 13 per cent derivation fund in November.
National Bureau of Statistics data showed that the nine states which are Abia, Akwa Ibom, Anambra, Bayelsa, Delta, Edo, Imo, Ondo, and Rivers shared N544.9bn from the federation account, through the 13 per cent derivation formula, in the first six months of the year.
