This archive report was first published on 8 July 2019.
Choppies supermarket has been facing a crisis in Kenya, with its Kiambu town branch shutting down just days after the retailer closed its Bungoma outlet.
The Botswana-owned retail chain has been struggling with stock shortages and debts, a similar fate to its former market giant competitor, Nakumatt Supermarkets.
Choppies was chosen as the anchor tenant for the Kiambu Mall in 2017, replacing Nakumatt due to financial difficulties. However, the retail chain is now facing similar challenges.
According to audit reports, massive revenue losses were incurred by Choppies, similar to the infighting at the management level that led to the closure of debtridden Uchumi and Nakumatt.
Choppies' other outlets across the country are also struggling, with empty shelves and a risk of closure. The retailer has six branches in Kisumu city, all of which are struggling, as well as eight others spread across Nakuru, Kisii, and Kericho.
"Choppies workers have not been paid in full to date. They have also failed to pay suppliers for a while now, and this explains the closure of some branches and empty shelves on others," said Kenya Union of Commercial, Food and Allied Workers (KUCFAW) Secretary General, Bonface Kavuva.
Choppies ventured into the country in 2016 by taking over Ukwala Supermarkets, but its troubles began in 2018 when the Botswana Stock Exchange and Johannesburg Stock Exchange halted the trading of its shares over the retail's failure to release financial results for the year ended 30 June 2018.
The retailer has since been facing numerous challenges, including the suspension of its CEO Ramachandran Ottapathu. The company's operations are currently in seven African countries, with stores operating in the new markets down to 212 from 260.
