The federal government has decided to close nearly 1,000 loss-making Utility Stores across the country as part of a major restructuring plan for the Utility Stores Corporation (USC), sources told Raised by Numbers.

So far, 446 outlets have already been shut down, with the remaining closures to be determined based on the stores’ daily performance. The decision primarily targets loss-making outlets in rural areas, which have historically relied on government subsidies to remain operational.

According to sources, stores with low revenue and consistent losses have been identified for closure. While concerns have been raised about the impact on employees, officials have assured that no immediate job losses are planned. However, the future of the 3,800 employees affected by the closures remains uncertain, with options such as dismissals or reassignments under consideration.

To mitigate losses, the corporation is also exploring the possibility of merging unprofitable stores with profitable ones to streamline operations and improve efficiency.

This restructuring comes after the government withdrew subsidies in August on essential items such as sugar, flour, and cooking oil, which were previously critical for low-income households. The removal of these subsidies has significantly impacted the financial viability of many Utility Stores, particularly in rural areas.