RETAIL

Supermarket group Choppies confirms its exit from Zimbabwean market

By our African Marketing Confederation News Team | 2024

Chain has 30 stores and more than 1,000 staff in the country. It hopes to find a buyer for the local operations.

Choppies, the Botswana-based supermarket group, has confirmed its rumoured exit from the Zimbabwean market and has begun a search for prospective buyers of its local assets. These include 30 stores and over 1,000 staff.

Photo: Choppies

According to media reports that circulated in the country in recent months, the instability of the Zimbabwe Gold (ZiG) currency introduced in April, high levels of inflation, and growing competition from the informal sector are all factors in the decision. 

 

Choppies is known to be worried that the resulting poor performance of the chain’s Zimbabwe operations is putting a strain on the financial performance of the group as a whole. 

 

“Ongoing power outages and droughts affecting agricultural produce have also contributed to the exit. Choppies noted that it had seen a reduction of 30% in footfall, partially due to customers shifting custom towards the informal sector,” comments Trendtype, the emerging markets consultancy. 

 

Informal traders are avoiding regulations and taxes 

 

“Formal retailers use the official exchange rate, whilst informal retailers purchase from manufacturers and sell to customers in USD. Informal traders avoid having to comply with regulations and manage to avoid paying tax and rental costs.” 

 

NewsDay, the Zimbabwean-based newspaper, quotes Choppies as saying: “While we believe in the country’s long-term viability, Choppies as a group needs more capital to support its Zimbabwean operations for extended periods and has already invested significant capital to support the operations. Due to the factors mentioned above, we have decided to exit the country.” 

 

Choppies now remains in Botswana, Kenya, Namibia and Zambia. It has previously exited several other African markets, including Mozambique and Tanzania. 

 

CEO Ramachandran Ottapathu is on record as saying that the long-term focus of the Choppies strategy is to reduce debt.

View all articles »
author avatar
Rozanne
See Full Bio

PUBLICATIONS

Strategic Marketing for Africa Magazine

CONTACT INFORMATION

info@africanmarketingconfederation.org

0
    0
    Your Cart
    Your cart is emptyReturn to Shop
    Continue Shopping

    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.