Choppies Enterprises Limited, a leading grocery retailer with a significant footprint in Southern Africa, has announced its intent to exit the Zimbabwean market. The decision was revealed in a press release dated November 29, 2024, outlining the company’s plans to sell its Zimbabwean operations, Nanavac (Pty) Ltd, which trades as Choppies Zimbabwe.
The press release stated:
“The board of directors of Choppies (‘Board’) hereby advises all shareholders that the Company has entered into discussions regarding a possible sale of the business operations of Nanavac (Pty) Ltd trading as Choppies Zimbabwe for cash, which, if successfully concluded, could have an impact on the Company’s share price.”
Choppies Zimbabwe operates 30 stores in the country and has been a significant player in the formal retail sector. However, the company cited several challenges that have led to its decision to leave Zimbabwe. Over the past two years, the Zimbabwean retail market has seen a substantial shift towards the informal sector, which now dominates consumer activity. Formal retailers like Choppies have faced a significant reduction in footfall—estimated at up to 30%—as well as fierce competition from informal traders.
Despite the company’s belief in Zimbabwe’s long-term economic potential, Choppies stated that it requires substantial capital to sustain its operations in the country. The company has already invested significantly but acknowledged that further investments would not align with its strategic focus on profitable retail operations.
The release also highlighted that the potential sale of Choppies Zimbabwe is subject to regulatory approvals, including clearance from the Zimbabwean Competition and Tariff Commission. Shareholders were advised to exercise caution while trading Choppies shares, as there is no guarantee that the ongoing discussions will lead to a formal transaction.
Choppies Enterprises Limited, which has its primary listing on the Botswana Stock Exchange (BSE) and a secondary listing on the Johannesburg Stock Exchange (JSE), emphasized its commitment to keeping shareholders informed about further developments.
The decision to exit Zimbabwe reflects the broader challenges faced by formal retailers in markets with high levels of economic informality. As Choppies realigns its focus on profitable operations, its move away from Zimbabwe marks a significant shift in the company’s regional strategy.
