Botswana retail group Choppies Enterprises will triple its retail outlets in Zimbabwe by adding 30 supermarkets in the medium-term, with plans to ultimately increase them to 60 in the long-term and fortify its presence in the country.
Choppies entered the local market, in partnership with local entrepreneur Siqokoqela Mphoko, by buying Bulawayo-based businessman Raj Modi’s investment company, Modi Enterprises, for BWP 180.2 million ($21.2 million), and taking over 11 of the outlets that were operating under the Aaro Mart and Spar franchises in Bulawayo.
It added two more, the last of which was in January this year and plans to open another two in Harare before the end of the year.
Choppies said it was now controlling 15 percent market share of the retail market in Bulawayo since 2013. Zimbabwe, it said, had ‘proven a worthy investment.’
“We intend to leverage our presence in Bulawayo as a springboard to expand to the north, with the potential for over 30 more stores in Zimbabwe in the near future,” said the company in a statement accompanying the group’s annual report for the period to June 30which was released yesterday.
“In the long term Choppies is targeting 60 plus stores in Zimbabwe,” it added.
Most of the new stores will be opened in Bulawayo and Harare.
Revenue for Zimbabwe operations in the year stood at $2.5 million, with a net profit of $1.95 million.
“The Zimbabwe expansion outperformed expectations, with results significantly ahead of the acquisition case despite the current deflationary conditions,” it said.
Choppies is Botswana’s largest retail chain with 63 outlets in Botswana and 13 in South Africa.- The Source