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Shoprite leaving Kano isn’t because of the economic situation in Nigeria. Afterall, they’re still opening new stores & doing business elsewhere.
They’re leaving because they couldn’t compete with the local champions, Sahad, Sufi, Wellcare, etc. Also, they offer no convenience!
Meanwhile, the store indicated that they will be opening new branches in other parts of the country, adding that their employees in Kano can apply for jobs in those stores.
“Additionally, we will operating new stores in the upcoming months and you are welcome to apply for employment there as well,” the statement outlined. Given the escalating cost of business operations and mounting inflationary pressure, the business environment continues to force many companies, and small and medium-sized businesses out of the economic space.
Earlier, Jumia announced a complete closure of its food delivery service, Jumia Food, in Nigeria due to a hostile business environment and an inability to optimize profit. With approval from the Federal Competition and Consumer Protection Commission (FCCPC), Ketron acquired 100% ownership of Shoprite in Nigeria with prospects of opening additional stores to optimise visibility for the wide variety of Nigerian-made products as well as international brands.
Business Insider Africa reports that the American company stressed challenges in conducting business as a dollar-denominated organisation and attributed its strategic decision to the macroeconomic conditions in Nigeria.
A few months ago, a top global pharmaceutical giant, GlaxoSmithKline (GSK) wound down its operation in Nigeria. GSK remains a top global pharmaceutical manufacturer and has had 51 years of operations in Nigeria.
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