Choppies uncertain about Mozambican market

CHAKALISA DUBE
Staff Writer | Friday June 15, 2012 00:00

'We are still awaiting certain information from Mozambique, but I cannot reveal the kind of information because it is confidential,' he said, guarded about the group's ambitions to expand to Mozambique.

He revealed that although they want to increase their market share by introducing the Choppies brand to other countries in the Southern African Development Community (SADC) region, they are currently busy with their expansion in South Africa.

Ottapath announced last July that Choppies intends to increase its market share in the African region by opening a new supermarket in Mozambique early this year. He said at the time that the retail group wants to leverage on its 24 year experience in the supermarket industry to penetrate the Portuguese-speaking Mozambican market, where poor service delivery is still widespread.

The CEO said the target was to open at least five supermarkets across Mozambique within the first year in the country. Meanwhile, the CEO also revealed then that the retail group would in August open a new supermarket in Tonota to increase its 40 percent market share in the country.

The store was supposed to open February this year but failed to take off because the premises were still under construction and were only completed in July.'We are going to invest nearly P16 million in the whole project, P9 million will be used on fittings and other logistics required for the store to function properly and P7 million will be invested towards buying stock. We are going to rent the facility, which is still under construction,' he said.

He said opening the supermarket will not only bring services closer to the people but will create jobs for the residents of Tonota and surrounding areas. 'Our intention is to create permanent employment to 60 percent of the local population, indirectly supporting 60 families once our operations are in full swing,' he added.

Establishing a new store in Tonota will also create an economic opportunity for farmers in Tonota and surrounding areas. According to Ottapath, the supermarket will buy vegetables and fruits from local producers. 'We will also purchase locally produced poultry and meat to support the farmers,' he said.

Choppies started from humble beginnings as Wayside Supermarket back in 1986 in Lobatse. Today it boasts nearly 50 stores in the country and 12 stores in South Africa. The company employs over 3 000 individuals and has an annual turnover estimated above P2.5 billion.