BOTSWANA – Fours Cash & Carry, one of leading player in Botswana’s Fast Moving Consumer Goods (FMCG) market, has opened its new generation store at Fours Fairgrounds Shop.
The latest study released on the Global Botswana Retail Market (GBRM) says that new store openings, acquisitions, and e-commerce drive will drive Botswana retail industry outlook to 2026.
Further, strong M&A activity coupled with the expansion of distribution channels will benefit the companies operating in the Botswana retail markets.
On the other hand, growing consumer awareness, increasing competition, costs involved in the deployment of advanced technologies such as Artificial Intelligence and emerging non-traditional resellers will challenge the market growth.
Retail companies across Botswana focus on improving economies of scale, boosting operational efficiency and diversifying revenue through e-commerce channels.
Knight Frank, one of the world’s leading independent real estate consultancies, has echoed the study from GBRM that the retail sector in Botswana continues to attract significant interest from new entrants, highlighted by major developments like GLA Mogolori Mall, which spans 28,400 sqm, and The A10, exceeding 17,000 sqm.
Phase one of The A10 is projected to be completed by 2025. These new additions will contribute approximately 50,000 sqm of retail space to the market, increasing the total retail inventory to around 350,000 sqm.
While the scale of development is below that of neighbouring South Africa it reflects a steady growth in the market. The sector is underpinned by a number of active local and South African players.
Spar, Shoprite, Woolworths, Pick n Pay, and Massmart are all among the South African retailers represented, while local chain, Choppies, is an example of a thriving Botswanan supermarket brand.
Choppies has over 100 stores throughout the country and plans to expand further into other African countries.
According to a market report from Stanbic Bank, most established large-scale distributors are based in the south or center of the country.
Smaller distributors exist in the north and are expected to expand operations as construction on oil and gas projects move forward. New entrants to the distribution market are also expected in the northern region.
Between the rival competition of supermarkets and general dealers has created a market gap, especially across streets and remote areas.
This gap created a new business model: Tuck-shops or Seamus as they are called in Botswana. The tuck-shops are a replication of general dealers but at a much lower level.
Stanbic Bank says they are similar in terms of advantages and disadvantages. For example, they are simple to start, require less capital to start, and offer convenient location to customers. But because they are family-run and informally managed, they struggle to grow and face vigorous competition.
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