Shoprite to Close Mombasa Outlet, Declares 115 Employees Redundant
Shoprite plans to close its outlet in Nyali Mombasa due to reduced flow of shoppers, a move that will cost 115 jobs.
A notice to the Kenya Union of Commercial Food and Allied Workers (KUCFW) says that the supermarket will cease its operations on August 31 2020, revealing that trading at the branch is not viable.
“…endeavour to continue trading at the Nyali branch is no longer viable. Financial and other data will be provided and discussed at a proposed meeting. It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020. There are currently 115 persons employed at the branch of which 92 are members of KUCFW,” Business Daily quoted the company’s notice.
Shoprite will remain with only two branches in Kenya, at Garden City Mall and Westgate Mall. In May, the retailer closed The Waterfront, Karen outlet, costing the jobs of 104 employees.
Shoprite Refocuses on South Africa
News of its upcoming closure come barely a week since the retailer announced plans to shut down its retail operations in Nigeria as it reevaluates its operating model.
Lockdown restrictions such as store closures, social distancing and limited trade in alcohol across 14 African states have severely affected its sales. Further, the retailer took blows as a result of currency devaluations, supply issues and low spending in Angola, Nigeria, and Zambia.
In April, the firm hinted on plans to exit the East African market on the grounds of unprofitability. Last year, the company exited Tanzania and Mauritius in 2018 on similar claims.
Operations outside South Africa, it’s country of primary listing only contribute to 20% of its profit.