Choppies Supermarket launches its first Cash and Carry outlet

BOSTWANA – Choppies, a Botswana multinational supermarket retailer, has launched its first cash and carry outlet in Lobatse, south east of the country.

According to the retailer, Dealers Cash & Carry is a hybrid discount format, offering higher discounts to trade customers that buy in bulk but also available to retail customers.

A new format for Choppies, the brand does not reference its parent company and is ostensibly independent.

Since the Dealers Cash & Carry store has been quietly launched, there is no indication from Choppies as to its rollout plan in other towns and cities. But it is likely to use Dealers to target rivals which operates both cash and carry stores as well as supermarkets, directly.

Late last year, Choppies Enterprises Limited announced exit from Zimbabwe, citing competition from the informal sector among other reasons.

In Zimbabwe, Choppies operates under its wholly owned subsidiary, Nanavac (Pty) Ltd, owning 30 grocery retail stores across the country.

Choppies has not yet revealed the identity of the potential buyer or the sale price though analysts believe the deal could attract interest from local players eager to expand their presence in Zimbabwe’s retail sector.

“The board of directors of Choppies (“Board”) hereby advises all shareholders that the Company has entered into discussions regarding a possible sale of the business operations of Nanavac (Pty) Ltd trading as Choppies Zimbabwe for cash (“Possible Sale”), which, if successfully concluded, could have an impact on the Company’s share price,” said the company.

The retailer added that the possible sale, which is subject to certain conditions and regulatory approval, is aligned with the strategic intent of Choppies to focus on profitable retail.

While the company expressed optimism about Zimbabwe’s long-term economic viability, it noted that continuing operations in the country would require substantial additional capital.

Choppies already made significant investments to sustain its Zimbabwean operations but acknowledged the challenges of prolonged financial support.

“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,” the retailer concluded.

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