Botswana’s Retailer, Choppies, to Close Stores in Three Africa Countries Including Kenya

Botswana owned giant retailer, Choppies, plans to exit three more African countries, the company said on Friday. The move come less than a fortnight after it said it would sell its loss making South African operations for only one rand (seven Kenyan shillings). The company added that it posted a Ksh 4.8 billion loss after tax for the financial year ending June 2018.

Choppies started as a single store in Botswana in 1986 and then expanded to South Africa, Zimbabwe, Zambia, Mozambique, Namibia, Tanzania and Kenya.

“Negotiations to sell the Tanzanian subsidiary are at an advanced stage, while the boards have also taken a decision to downscale its operations in Kenya and dispose of the stores to the local operators,” it said in the statement accompanying delayed financial results for the year ending June 2018.

In Kenya, the retailer had 12 stores after acquiring the then Ukwala Supermarket and had plans to set up two new outlets this year but the expansion binge and a loss of Sh 126.8 million from six insolvent outlets in Kisumu and Nakuru hit the retailer hard.

Choppies will exit markets in Mozambique, Tanzania and Kenya, halving its footprints to just four countries it said in an announcement through the Botswana Stock Exchange late last week on Friday.The group will continue operating in Botswana, Zimbabwe, Zambia and Namibia.

In September, the retailer laid off over 200 workers in its Kenya operations as it started preparing for its exit from the market. The retailer announced IG had listed its Kenyan assets for sale besides classifying its 12 stores as distressed. Choppies has experienced financial upheaval for most of the year,with suppliers going unpaid for months.