Choppies Enterprises, a prominent Botswana-based grocery retailer, has announced that it is in discussions regarding the potential sale of its operations in Zimbabwe, which could significantly impact its share price. This decision was disclosed in a press release issued by the company on November 29, 2024, in compliance with the Botswana Stock Exchange’s (BSE) listing requirements.
The operations in question are those of Nanavac (Pty) Ltd, trading as Choppies Zimbabwe, which currently operates 30 stores across Zimbabwe. The possible sale, which is still subject to certain conditions and regulatory approvals, marks a strategic shift for the company as it seeks to focus on its more profitable retail ventures.
Choppies noted that over the past two years, the retail landscape in Zimbabwe has changed dramatically. There has been a significant shift toward the informal retail sector, resulting in a reduction of up to 30% in foot traffic for formal retailers like Choppies. This has made it increasingly challenging for formal retailers to compete, as the informal sector continues to grow.
Despite the challenges, Choppies remains optimistic about Zimbabwe’s long-term potential. However, the company has highlighted that it requires additional capital to sustain its Zimbabwean operations over the long term. Having already invested considerable resources in supporting the business, Choppies has decided that exiting Zimbabwe is the most viable option at this stage.
The company emphasized that while discussions are ongoing, there is no certainty that they will result in a formal transaction. Approval from Zimbabwe’s Competition and Tariff Commission is also required for the sale to proceed.
Shareholders have been urged to exercise caution when trading in Choppies shares until further announcements are made. The company’s shares are listed on both the BSE and the Johannesburg Stock Exchange (JSE).
This decision marks a pivotal moment for Choppies as it continues to navigate the challenges of operating in various African markets while refining its focus on more profitable ventures.
