SIM SHAGAYA’S HEADACHE
In 2012, Sim Shagaya, a bubbly and ambitious businessman, launched Konga, an online store, after several failed attempts.
After three years of full operations with successful delivery across Nigeria, it was rated one of the biggest online stores in Nigeria and West Africa, with over 20 million customers’ data base.
Its success story is attributed to the online retail store’s products’ affordable prices, swift delivery and payment option of pay on delivery - it was, however, later changed to pay before delivery due to frequent return of orders by what the management described as “unserious customers.”
About four years after its launch, Shagaya, took a break as the head honcho and appointed Shola Adekoya as the company’s Chief Executive Officer, CEO. But recent developments in the organisation seem to point to the fact the change of guard was ill-timed and miscalculated. How? The company, instead of recording progress, is said to be nosediving. Indeed, to put it mildly, it is gasping for breath.
Investigation revealed that the company is currently being rocked with a lot of internal crises largely due to abuse of office, misappropriation of funds, and incompetent management, among others. The company is said to have lost millions of Naira to internal theft, as goods worth over N200 million, most especially mobile phones and other costly gadgets, got missing from the warehouse without a trace, despite having closed-circuit television (CCTV) cameras and heavy security vetting. A source revealed that “some top staff members are running a lot of racketeering, most especially during the ‘Black Friday’ and ‘Clean Up’ cheap sales. The top officials will cart and buy out most of the juicy goods for sale at cheaper prices and resell to members of the society at their preferred prices.’’
It was further gathered that the company would soon vacate its mega warehouse located in the Ogba area of Lagos for a smaller one in Ilupeju, as it can no longer afford the rent.
As evident of the crisis rocking the company, Konga sacked over 60 per cent of its staff last December. “The salaries of the lucky staff, who escaped the big hammer, were slashed by over 70 per cent,” the source added.