This archive report was first published on 4 August 2020.
Choppies Enterprise Ltd, a Botswana-based supermarket chain, has announced plans to exit the Kenyan and South African markets, citing lack of profit in these countries.
The company, which has been operating in Kenya and South Africa for several years, will also be closing its outlets in Mozambique and Tanzania, where it has been experiencing revenue blows, exacerbated by fraudulent activities.
According to Ramachandran Ottapathu, CEO of Choppies Enterprise Ltd, the company will focus on its home market of Botswana, where it will be adding new stores and expanding its operations.
"We are exiting from a few markets where the growth has been coming at the expense of Botswana. When we stop funding the loss-making areas, shareholders will see the value back to them," Ottapathu was quoted as saying by BusinessWeek in 2020.
Choppies will continue to operate in Zimbabwe, Zambia, Namibia, and its home country Botswana, promising balanced growth and phased expansion.
"So in Botswana, maybe add a couple of stores this year, Zambia is self-sustaining and growing slowly, Zimbabwe we will take a look at the market and how it goes and Namibia we need to grow there," Ottapathu said.
Choppies' decision to exit the Kenyan and South African markets comes as Shoprite, another retail giant, is also planning to divest from the Nigerian market, selling off its majority stake in the country.
Choppies recently resumed trading on the Botswana Stock Exchange after a 20-month suspension following its failure to publish its financial results. The company hopes that the Johannesburg Stock Exchange will soon lift its suspension, following the recent release of its 2019 financials in line with stock exchange requirements.
