Retail Supermarkets Nigeria Limited, the owners of the renowned Shoprite Mall, announced the closure of its Kano branch, located in the Ado Bayero Mall, effective January 14, 2024.
The decision was conveyed through a circular signed by the supermarket’s management, attributing the shutdown to the current financial strain experienced by the mall in the state and the challenging business climate prevailing in Nigeria.
The circular expressed regret over the necessity of the decision, hinting at the impending layoff of all employees associated with the Kano branch.
While the closure raises concerns about the impact on the local workforce, underlying factors contributing to the move have been brought to light.
Among the primary reasons for the planned relocation is the exorbitant monthly rent of N66 million paid by Shoprite to Ado Bayero Mall.
Also, the supermarket bears the cost of independent electricity from the Kano Electricity Distribution Company (KEDCO), along with expenses for fueling and maintaining its standby generator.
When considering these substantial costs alongside staff salaries and other operational expenditures, the total financial burden becomes staggering, exceeding N1 billion annually.
Several sources within the mall have attested to a decline in customer patronage over the past two years, mainly attributed to the economic downturn affecting the purchasing power of the average Kano resident.
Shop owners within Ado Bayero Mall voiced concerns about the high cost of leasing space, with some revealing quarterly fees ranging from N3 million to N4.5 million.
The closure of Shoprite in Kano not only poses challenges for employees facing job uncertainties but also raises questions about the sustainability of businesses surrounding the mall.
Concerns about the impact on neighboring plazas and enterprises have prompted intervention efforts, with Deputy Senate President Barau Jibrin scheduled to meet with Shoprite’s management in a bid to prevent the exit and explore potential solutions.
As Kano braces for the repercussions of Shoprite’s departure, the incident underscores broader challenges facing businesses amid Nigeria’s economic realities.