Choppies sells Zimbabwe business for P3.75m
Pauline Dikuelo | Wednesday April 16, 2025 06:00
The transaction, confirmed this week, forms part of Choppies Group’s ongoing strategy to streamline its operations and focus on more profitable regions. Choppies first entered the Zimbabwean market in 2013 by acquiring 10 Spar outlets from Modi’s SAI Enterprises for approximately $22 million. Over the years, the retailer expanded its footprint in the country, growing to a total of 30 stores across Zimbabwe. Announcing its exit last year, Choppies cited difficult trading conditions in Zimbabwe’s formal retail sector, stating that in Zimbabwe, over the last two years, there has been a significant shift to the informal retail sector, leaving the formal retail sector to battle a reduction of up to 30% in footfall and having to compete with the informal sector. At the time of the sale, Choppies Zimbabwe held property, plant, and equipment valued at $2 million, along with stock worth $1.4 million.
However, the company has booked a $1 million loss on the transaction, underscoring the challenges it faced in the market. The buyer, Pintail Trading, is a well-established supermarket retailer in southern Zimbabwe, with a strong presence in both grocery and hardware sectors. The acquisition marks a strategic expansion for Pintail, reinforcing its role as a key player in the region’s retail landscape. In a statement, Choppies noted that the sale does not constitute a significant transaction under the Botswana Stock Exchange (BSE) listing requirements. Both the purchase consideration and the market value of the Choppies Zimbabwe assets are below five percent of the company’s net asset value, categorising this as a voluntary announcement. 'Whilst Choppies believes in Zimbabwe's long-term viability, for the Zimbabwean operations to be profitable, Choppies Group will need to invest more capital to support its Zimbabwean operations for the extended periods. Supporting the Zimbabwean operations won't be economically viable for the Choppies Group at this time. Due to these factors, Choppies has decided to exit Zimbabwe,' read a statement published on the national bourse.
This divestment reflects Choppies’ continued focus on optimising its portfolio by concentrating resources on its most lucrative markets.