SA Retailer Shoprite To Close Waterfront Karen Outlet, Terminate 104 Employees

South African retail giant Shoprite is set to close up shop at the Waterfront, Karen branch.

In a letter addressed to Kenya Union of Commercial Food and Allied Workers secretary general, the retailer declares their intention to close the outlet as it is no longer viable.

Shoprite management further notes that all the employees at the branch will as a result of ceasing operations be declared redundant.

The retailer has at least 104 employees at the outlet which opened its doors on September 26, 2019.

In the letter, employees have been served with a month’s notice, after which they will be rendered jobless.

Further, Shoprite management has asked to meet with its employees on April 16 to discuss the extent of redundancy.

Severance pay, accrued leave days and notice period and pay will also be on the list of agenda.

Employees will have their services terminated on May 20, 2020, the letter indicates.

“It is contemplated that the intended date of termination on account of redundancy will be 20 May 2020.

“It should be noted that the branch will cease trading operations on a sooner date but this will not prejudice you as you will continue to tender your services at same branch until termination date,” the letter reads.

Those with additional information have been advised to write to the human resource manager Carolyne Walubengo within 24 hours.

During this COVID-19 pandemic businesses continue to shut down as tough financial times bite.

Experts say the economic situation could take up to six months to stabilize.

In 2019, the retail giant closed the financial year with a Sh79 billion debt including an 84 Million rand loan from Stanbic Bank meant for expansion.

The company then disclosed that financial year ending June 2020 will see to fruition a number of strategic projects.

Shoprite employs at least 500 people in Garden City Mall, Westgate Mall and the Waterfront Mall, and Mombasa’s City Mall.

It has operations in Tanzania and Uganda with a deepening presence in West, Central and Southern Africa.

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