Shoprite Set to Close Second Store in Kenya, 115 Staff to be Laid Off

South Africa-based retailer, Shoprite Holdings has reportedly concluded plans to close another of its store in Kenya barely a year after opening.

Reuters reports that the company confirmed its store at City Mall in Nyali, Mombasa would cease operations by the end of August 2020.

In a letter, dated July 30, and addressed to the Kenyan Union of Commercial Food and Allied Workers (KUCFAW), the company said trading would stop at the store on August 31.

“It is contemplated that the intended date of termination on account of redundancy will be August 31, 2020,” the letter seen by Reuters said.

It was gathered that the company would lay off 115 staff as a result of the closure.

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Shoprite also reacted to the closure in a response via email. It disclosed that the company is evaluating all of its operations across Africa “based on current and future performance”.

“It is unfortunate that we have no alternative but to terminate the employment of the valued employees that have helped to establish this store. The decision was not taken lightly,” the company said.

The chain supermarket had in April closed one of its four stores in Kenya, citing months of “trading in a difficult economic climate”. The store was opened in September 2019.

The retailer’s stores are scattered around 14 African countries with 25 stores in Nigeria alone.

In its financial release earlier this week, the company had said it was considering “discontinuing” its operations in Nigeria.