Botswana based supermarket Choppies is planning to close its retail outlets in Kenya and South Africa citing lack of profit in the countries. The supermarket will also exit Mozambique and Tanzania after bearing revenue blows, worsened by fraudulent activities.
Choppies Enterprise Ltd CEO Ramachandran Ottapathu says the company will instead focus on Botswana’s growth, adding new stores.
“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,” BusinessWeek quoted the supermarket CEO.
Choppies will focus on other new markets, and continue operating 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.”
Shoprite is also taking a similar divestiture, planning to exit the Nigerian market, selling off its majority stake in the country as it reevaluates its operation model.
Choppies Resumes Trading In Botswana Bourse
Choppies recently resumed trading on the Botswana Stock Exchange, after a 20-month suspension following its failure to publish its financial results. The delay in reporting results also led to the suspension of trading in the Johannesburg Stock Exchange, where the retailer has a secondary listing. Choppies hopes that the JSE will soon lift its suspension, following the recent release of its 2019 financials in line with stock exchange requirements.
“We are hoping the JSE will soon lift the suspension … they have to follow what has happened in the primary market,” Nasdaq quotes Ottapathu.