Tag: Shoprite

  • Shoprite to shutdown Abuja branch June 30 over state of economy

    Shoprite to shutdown Abuja branch June 30 over state of economy

    Shoprite Mall has announced the closure of one of its branches in Abuja, effective June 30, 2024.

    The branch set to close is located at Novare Central Mall in Wuse Zone 5.

    This decision was communicated in a circular signed by the Chief Executive Officer, Dr. Folakemi Fadahunsi, on Monday, June 24.

    The mall cited a thorough assessment of the store’s financial status and the state of the economy as the reasons behind this move.

    Vendors were also informed that their services would no longer be required at the store.

    The circular read: “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organization’s long-term growth.

    “Effective June 30, 2024, our company will no longer operate in Wuse, Abuja, and we will no longer require your services for the Novare Wuse Central Mall Store. Please note that all existing service contracts will also terminate for the store.

    “If your services are specifically tied to the Novare Wuse Central Mall Store and if there is an outstanding balance between our companies, we will carefully review our accounting records over the next 60 days (about 2 months). We will then promptly contact you to confirm the amount owed and discuss a suitable 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 there is anything we can do to assist you during this challenging transition, please do not hesitate to reach out to us.”

     

  • Shoprite to close down Abuja branch, June 30

    Shoprite to close down Abuja branch, June 30

    Shoprite Mall will cease to operate one of its branches in Abuja  starting from June 30, 2024.

    The branch is situated at Novare Central Mall in Wuse Zone 5.

    Dr Folakemi Fadahunsi, the Chief Executive Officer, of Shoprite Mall made this known via a circular  on Monday.

    A staff at the store who pleaded anonymity also confirmed the report, saying “Yes, it is true, we just heard it here too.”

    The popular mall attributed its decision to a thorough evaluation of the store’s financial situation and the current business climate.

    Furthermore, the mall notified its  vendors that their services would no longer be needed at the store.

    The circular read, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organization’s long-term growth.

    The popular mall attributed its decision to a thorough evaluation of the store’s financial situation and the current business climate.

    It additionally notified vendors that their services would no longer be needed at the store.

    The circular read, “We regret to inform you that as of June 30, 2024, Retail Supermarkets Nigeria Limited will be closing its Wuse Store located in Novare Wuse Central Mall, Abuja. This decision has been made after a thorough evaluation of the store’s financial situation and the current business climate. We believe this is the best course of action for our organization’s long-term growth.

  • Just in: ShopRite shuts down operation in Kano, gives reason

    Shoprite Mall has announced its intention to cease operation in its Kano branch, Northwest Nigeria from January 14, 2024.

    This was contained in a circular signed by the management of the retail supermarket on Thursday, December 14, 2023.

    The mall, located in Bayero Kano State, said it would not continue its operations in the state due to the current financial situation of the mall in the state as well as the difficult business climate in the country.

    In the circular, the supermarket noted that the decision is regrettable, however necessary, hinting that all the employees working at the mall will be laid off once it ceases operation in the state.

    The circular reads; “I regret that our store in Ado Bayero Mall, Kano, will be closing its doors on January 14 2024. This decision was not made lightly, as we understand the impact it may have on our employees and the community. However, after careful evaluation of the financial situation of the store and the current business climate, we believe that it is the best cause of action for the long-term growth of our organization.

    We understand that this news may be difficult to digest. We want to assure you that we are here to support you during this transitional 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 position in existing our store across the country through the Human Resources department,” the statement reads in part.

    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.

    This development is coming on the heels of the current announcement by Jumia Food to cease operation in Nigeria by the end of this month, citing burgeoning economic challenges and the high cost of operation in the country.

    Francis Dufay, CEO of Jumia, noted that the company has decided to divert its capital resources to other ventures within the company, stating,

    “Food delivery remains a business with very challenging economics, in Africa and across the world, and we want to focus our efforts on our physical goods e-commerce business, in the eleven markets where we operate. This is a matter of prioritization of opportunities, and expected return on investment,” he said.

  • Court stops Shoprite owners from selling assets in Nigeria

    Court stops Shoprite owners from selling assets in Nigeria

    A Federal Capital Territory (FCT) High Court has restrained a South African company, Novare and its subsidiaries, from selling off their assets in Nigeria.

    Novare is the owners of retail malls, including Shoprite malls, in the country.

    Justice Peter Kekemeke gave the interim order following an ex-parte motion moved to the effect by counsel to the applicants, Darlington Ozurumba.

    Grand Towers Reality Ltd, Grand Towers Plc and Nze Chidi Duru, who were applicants in the suit marked: FCT/HC/0224/2017 with motion on number: M/13811/2023, are the Nigerian partners to Novare Investment (PTY) Ltd, owners of Shoprite.

    They had sued Novare Investment (PTY) Ltd, Novare Equity Partners (Proprietary Ltd), Novare Fund Management Ltd, Novare Africa Fund Plc and Mr Derick Roper as 1st to 5th defendants respectively.

    In the motion dated Oct. 3, the applicants prayed the court for an interim order restraining the defendants from selling, leasing, transfering of interests of the property or assets knowns as Novare Mall Lekki, Lagos State; Novare Mall, Sangotedo, Lagos; and Novare Gateway Mall, Lugbe District, Abuja.

    Others include Novare Mall, Apo, Abuja; Novare Central Mall, Wuse Zone 5, Abuja, and all other Novare Malls under construction in Nigeria, pending the hearing and determination of motion on notice.

    Justice Kekemeke consequently granted the order of interim injunction after Ozurumba moved the motion on Nov. 6.

    The certified true copy of the order was made available to newsmen on Wednesday in Abuja.

    The judge adjourned the matter until Feb. 13, 2024, for hearing of the motion on notice.

    The development is the latest in the lingering legal battle between the parties since 2017 following Novare’s plans to divest from Nigeria, citing supply chain disruptions and difficulty in the repatriation of funds.

  • #EndSARS: Shoprite reopens Lekki Mall after 24-month long closure

    #EndSARS: Shoprite reopens Lekki Mall after 24-month long closure

    Retail Supermarket Nigeria Ltd (RSNL), owners of Shoprite in Nigeria, has announced the resumption of commercial activities at its store in Circle Mall, Jakande, Lekki area, after a 24-month long closure.

    The Chief Executive Officer, RSNL, Mr Hubertus Rick, made the disclosure at the Circle Mall reopening ceremony on Friday in Lagos.

    Newsmen reports that economic activities at the mall was brought to a halt following a series of looting incidents which occurred on the heels of the nationwide #EndSARS protests in 2020.

    The Circle Mall store; one of 24 nationwide outlets currently bridging the gap between local businesses and consumers before the protests accommodated close to 50 businesses.

    Rick said the mall’s reopening was in line with the RSNL’s quest to make formal retail formats accessible to more Nigerians while rebuilding the economy.

    This, he explained, was in view of the fact that over the years, Shoprite Nigeria had made significant contributions to the nation’s economy.

    He noted that the company currently boasts of 10,000 staff; directly and indirectly employed with a supply chain of more than 300 leading Nigerian suppliers, and partnership with many small businesses, farmers, suppliers of an assortment of local brands.

    “Two years ago, we made a tough decision to shut down operations at the Shoprite Circle Mall in response to the insecurity situation.

    “The closure was in the interest of our customers as well as our staff as we had to prioritise the safety of lives and properties ahead of other interests.

    “Today, we’re happy to commence operations again as we have put measures in place to ensure the safety of all who will walk through our doors.

    “We are aware of the impact that the closure has had on our supply chain as well as the business at large.

    “As we reopen this store and other outlets in subsequent months, we are prioritising ensuring a safe shopping environment for our customers while expanding our retail network,” he said.

    ****Rick also announced that the company, within the next six months, would open up its malls in locations namely: Benin, Kaduna and Port Harcourt.

    He reiterated the company’s commitment to the safety and freshness of all consumables, agricultural and butchery products via its full integration from the farming, slaughtering to preparing for its customers.

    Mr Olurotimi Bajomo, Centre Manager, Circle Mall, said the company went through several insurance and other processes to restart its operations.

    Bajomo, assuring its customers of a rejigged security architecture, said the management had introduced several physical reenactments on the premises to avert any form of mis-happening.

    “The management of the mall has introduced physical reenactments such as roller shutter doors, and engaged the services of the Nigeria Police and military officials as well as other security outfit to guarantee the safety of investments, people and properties.

    “The management has also began community liaison to engage the community better to protect against a repeat of any negative occurrences.

    “The company is ready to provide bigger and better services to all its customers,” he said.

  • Ketron Investment Limited acquires Shoprite Nigeria

    Ketron Investment Limited acquires Shoprite Nigeria

    A deal has been reached in the acquisition of Retail Supermarkets Nigeria Limited, owner and operator of the Shoprite stores in Nigeria, by Ketron Investment Limited, a Nigerian company owned by a group of reputable institutional investors led by Persianas Investment Limited.

    The divestment by Shoprite International is in line with its strategy to change from an ownership model to a franchise model.

    This change in ownership has also received the approval of the Nigerian regulator, the Federal Competition and Consumer Protection Commission.

    Speaking on the acquisition, Chairman, Ketron Investment Limited, Tayo Amusan, said: “We are thrilled to complete the acquisition of Shoprite, ensuring the continued operations of one of the biggest retail success stories in Nigeria.

    “We look forward to building an even stronger company following our acquisition and are excited about the greater impact we will achieve to the benefit of our customers and other stakeholders now and well into the future”.

    Since its launch in Lagos in December 2005, Shoprite has expanded to 25 outlets across eight states and Abuja, FCT.

    According to the terms of this acquisition, Ketron acquires 100 per cent ownership of Shoprite in Nigeria and will continue operations across all existing outlets.

    It also plans to open additional stores and introduce more Nigerian-made products in the stores.

    This, he noted, will also result in more opportunities for Nigerians.

    “It is our vision to create fundamental change for the better within Nigeria,” said Amusan.

    “With benefits from our knowledge of the ever-evolving Nigerian retail marketplace, well-grounded social and economic research, and hands-on experience from our team, we are confident that this acquisition will foster a robust and sustainable business model for the ultimate benefit of all stakeholders.”

    Professional services firms, KPMG, MBO Capital Management Limited and Banwo & Ighodalo, advised Ketron on the deal.

    Jide Ogundare, CEO, MBO Capital, stated that the deal signals an opportunity for Ketron to uphold a thriving business.

    “It will be hard work,” Ogundare said, “but with the plans we have in place, and with the support of the larger Shoprite family in Nigeria including our staff and every Nigerian shopper that walks through our doors, we are confident of success.”

    Shoprite Holdings is Africa’s largest food retailer, operating 2,843 supermarkets in 15 countries and serving 35 million customers in Africa and the Indian Ocean Islands.

    At the moment, Shoprite Nigeria’s supply chain includes more than 300 leading Nigerian suppliers, and boasts small businesses and farmers among its partners and suppliers.

    Ketron has said Shoprite International will continue as technical advisers and Ketron will sustain the relationships established by Shoprite over the last decade and a half while ensuring a smooth “transfer of values.”

  • Shoprite workers embark on protests, shut down company indefinitely

    Shoprite workers embark on protests, shut down company indefinitely

    Shoprite workers at Ring Road branch, Ibadan, on Friday, embarked on another round of protest, shutting down the company indefinitely.

    The workers, under the aegis of National Union of Shop and Distributive Employees (NUSDE), vowed that the company would remain shut until management acceded to their demands.

    The Chairman, NUSDE, Shoprite branch, Mr Williams Peter, told the News Agency of Nigeria (NAN) in Ibadan that the union was using the Easter period to press home its demands since dialogue had failed.

    He stated that all Shoprite stores had been shut down nationwide because the negotiation between the union and the management had been deadlocked.

    Peter attributed the indefinite strike to the alleged refusal of the management to meet up with the demands of the union.

    He said that although the planned transfer of Shoprite to a new owner had been withheld for now, we see this Easter period as the right time to get management to listen to us and accede to our demands.

    “However, if the management is not ready to listen to us, it then means that Shoprite is not ready to open this April. We will shut the company down until they listen to us.

    “Give us what we want and we will then be ready to discuss with the new investors and have a new agreement with them,” the union leader said.

    Meanwhile, the management of the company has described the industrial action embarked upon by the workers as ‘unlawful’.

    The management, in a memo issued by its Divisional Human Resources Manager, Adeola Kagho, the company said that it was appropriate action to be taken against the striking workers, saying that this might include their summary dismissal, should they fail to return to work.

    “Please note that your conduct is in breach of your contract of employment, company rules and procedures and the applicable federal legislation.

    “The company is not prepared to tolerate your participation in any unlawful industrial action.

    “The company is now considering appropriate action to be taken against you and this may include your summary dismissal, should you disregard the instruction/ultimatum hereunder.

    “You are accordingly instructed to return to work immediately in an orderly and diligent manner,” Kagho said.

    She urged the workers to follow the ‘established company’s internal procedure, should they wish to raise any grievance.

    NAN reports that the union’s demands include better conditions of service and payoff whenever the company decides to change its ownership.

    NAN also reports that the union had embarked on a warning strike on March

  • JUST IN: Workers vow to cripple Shoprite indefinitely

    JUST IN: Workers vow to cripple Shoprite indefinitely

    Shoprite workers have vowed to embark on an indefinite strike and cripple activities of the fast moving consumer goods (FCMG) retail outlets across the country.

    TheNewsGuru.com (TNG) reports the National Union of Shop and Distributive Employees (NUSDE), Shoprite Ring Road Mall branch, Ibadan made this known on Wednesday.

    Chairman of the union, Mr Williams Peter said the workers of Shoprite nationwide had, on Tuesday, embarked on a warning strike to press home their demands.

    Peter, however, said that the warning strike was suspended to allow for a roundtable dialogue slated for March 4, with the management of Shoprite.

    He said that workers ought to be informed by management on the agreement it had with the new investors, especially concerning them.

    “Already, we are not okay with the Shoprite management concerning working conditions. The same is now being transferred to the new owner without our inputs.

    “We are fighting for the adjustment of staff benefits under our agreement with Shoprite; this fight has been ongoing for years.

    “We want to sit down with the new investor to enter into a new agreement; that is what we want.

    “All we need is for Shoprite management to give us our right, which could either be payoff or ex gratia.

    “Management should not keep quiet and leave the staffers without taking care of their benefits,” he said in an interview with NAN.

    Peter said that the workers were interested in the development and progress of the company, adding, however, that management should treat them well by settling them with appropriate ex gratia.

    “There is a policy under labour law which says when a company is sold out, there are some benefits that the workers must get.

    “But, we have discovered that nothing is coming to us from our management.

    “We sent mails to them, trying to make enquiries as to what would be the fate of members of staff, but we were ignored.

    “The union then gave us the go-ahead to hold a warning strike, which we embarked on Tuesday.

    “The strike was suspended by 6 pm. that Tuesday, with a promise of roundtable dialogue by Shoprite management on Thursday, March 4,” Peter said.

    One of the staffers, who craved anonymity, said that they were only waiting for the outcome of the negotiations on Thursday before determining the next line of action.

    “If the outcome of the negotiation is not favourable to us, we will resume our indefinite strike before April 1, but we hope the issues will be resolved before then,” the worker said.

    Another staff member, who simply identified herself as Grace, said “most of us have been with the company for between five and 10 years now, and the management didn’t let us know when the company was sold.

    Grace said that management had earlier denied the transfer of ownership until it became glaring.

    “They want to do the handing over by April 1 without paying our benefits. They cannot abandon us just like that.

    “One of our supervisors said, ‘we have sold you people like tissue paper’. We are not properties; they cannot sell us.

    “We are about 150 workers in this branch and there are people whose appointments have not been confirmed since they joined the company eight years ago.

    “We are being paid peanuts, with no health insurance and gratuity; we only have pension, and we pay tax,” Grace said.

    Some of Shoprite customers, who spoke with NAN, expressed happiness that the store was eventually opened, with no escalation of the industrial action that took place on Tuesday.

    “We hope that thee management will resolve the issues with their staff members on time, so that both parties will be happy at the end of the day,” they said.

  • BREAKING: Shoprite outlets across Nigeria shut down as staff begin industrial action

    BREAKING: Shoprite outlets across Nigeria shut down as staff begin industrial action

    All 25 outlets of food retailer Shoprite in Nigeria have been shut down by workers, who are currently embarking on an industrial action over the sale of the company to Tayo Amusan’s Jara.

    TheNewsGuru.com (TNG) reports the workers took to the Shoprite outlets located in malls across the cross the country to express their grievances, obstructing normal business operations.

    The contract papers signed by staff show that many of them were to work with Shoprite until between 2035 and 2040.

    But with the current management set to exit in June, the staff demanded to be paid off rather than run the risk of sack after they are transferred to a new Nigerian company.

    However, Shoprite has been uninterested to accede to the demand of the striking workers to pay them off.

    Recall in August 2020, Shoprite announced the commencement of a formal process to discontinue its operations in Nigeria.

    The end of Shoprite in Nigeria followed approaches from various potential investors, and in line with re-evaluation of the group’s operating model in the country.

    Shoprite Nigeria operates about 25 outlets across the country and employs over 2,000 employees, a substantial number of whom are Nigerians.

    Property investor and chairman of Persianas Group, Amusan, owner of Jara is at a pole position to takeover Shoprite.

    Persianas Nigeria Limited is a property development company Amusan founded in 1990. In 2004, he launched The Palms.

    Owing to the success of The Palms in Lagos, he floated three additional malls in Enugu, Kwara, Ota and Ibadan.

    Jara is a new entrant into the retail sector in the country. They have outlets in Ikeja and Benin.

  • Shoprite staff suspended for lateness to work allegedly commits suicide on New Year Eve

    Shoprite staff suspended for lateness to work allegedly commits suicide on New Year Eve

    A staff of Shoprite in Akure, Ondo State identified as Jumoke Kehinde has reportedly committed suicide after being suspended for reporting late to work.

    Kehinde was said to have been found dead on New Year’s eve at her apartment in the Kajola area along Oda-road, Akure.

    A co-staff to the deceased at Shoprite who pleaded anonymity said late Kehinde reported late for work and was ordered suspended.

    According to the staff, “It is normal that anyone who comes late should wait outside before they are allowed in and be given a suspension.

    “She was seen arranging her table getting ready for the day’s sales as she looked happy but later left the mall at about 11 am after receiving the suspension letter.

    “At about 4 pm, a distress call was received in the office that she was not feeling fine. One of the management staff went to check on her. Kehinde was found on the floor of her room shaking while her body was oozing with odour of the poison she took. Although, no empty can was found anywhere as she was rushed to the hospital.

    “After some time at the hospital, she was declared dead. One of her relatives said she did not show any sign of depression.

    “She was given a suspension for coming late that day. She was told to go home. After then she went back home.

    “We all know that when you come late you will be given a suspension for a few days without payment.

    “I don’t see any reason why such an issue would cause her to kill herself by committing suicide.”

    Ondo Police spokesman, ASP Tee-Leo Ikoro, could not be reached for comments but police sources said her body has been deposited in a morgue while investigation has commenced unraveling what led to her suicide.