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Writes Valentine Maponga
Harare – November 29, 2024 – Choppies Enterprises Limited, a prominent grocery retailer incorporated in Botswana, has announced that it is in discussions regarding a potential sale of its business operations in Zimbabwe. The company’s board of directors revealed that these negotiations, if successful, could significantly impact the company’s share price.
Choppies Zimbabwe, a wholly-owned subsidiary of Choppies Enterprises, operates 30 stores across the country. The potential sale, subject to certain conditions and regulatory approval, aligns with Choppies’ strategic focus on maintaining profitable retail operations.
Over the past two years, Zimbabwe’s formal retail sector has faced substantial challenges, including a significant shift towards informal retail markets. This shift has resulted in a reduction of up to 30% in foot traffic for formal retailers, intensifying competition with the informal sector. Despite Choppies’ belief in Zimbabwe’s long-term viability, the company acknowledges the need for additional capital to sustain its operations in the country. Given the considerable investment already made, Choppies has decided to explore exiting the Zimbabwean market.
The company cautioned shareholders that there is no certainty the discussions will lead to a formal transaction. Additionally, approval from the Zimbabwean Competition and Tariff Commission is required for any sale to proceed. Consequently, shareholders are advised to exercise caution when trading Choppies shares until further announcements are made.
Choppies Enterprises Limited is listed on both the Botswana Stock Exchange (BSE) and the Johannesburg Stock Exchange (JSE).
This cautionary announcement highlights the ongoing challenges faced by the formal retail sector in Zimbabwe and Choppies’ strategic efforts to navigate these hurdles while focusing on profitable operations.
