This archive report was first published on 7 October 2019.
On October 7, 2019, Choppies Supermarket, a Botswana-based retailer, closed its third outlet in Kenya, marking a significant setback for the struggling company.
Kenyan retailer Tuskys has taken over Nanyuki Mall as anchor tenant after Choppies was pushed out, losing its third branch.
Choppies has been experiencing stockouts amid static fixed costs of running on empty shelves, leading to the closure of its Kiambu and Bungoma outlets earlier this year.
According to a notice to tenants, Choppies had agreed to vacate the premises to give way to Tuskys supermarket, which will move in by the end of October.
Choppies had stores in major towns including Kisumu, Nakuru, Kisii, and Kericho, but the heavy stockouts have hit its business hard, forcing it to make some hard decisions.
As a result, the retailer sent home over 200 workers in early September, days after it emerged that it plans to exit the Kenyan market.
Choppies' troubles started after the retailer was suspended from trading at the Johannesburg and Botswana stock exchanges in November 2018 due to certain irregularities in its financial statements.
The board of the Botswana-based retailer met in September and a faction led by former President of Botswana Festus Mogae wanted the retailer to pull out of Kenya and South Africa.
Choppies made an entry into the Kenyan market in June 2015 by buying a stake in Ukwala supermarkets for Sh1 billion.
