Former VP Mphoko’s retail business Choppies to close shop
HARARE – Leading grocery retailer, Choppies Enterprises Limited has announced plans to cease its operations in Zimbabwe citing, among other reasons, competition from the informal sector.
In a statement, the Botswana listed firm owned by Nanavac (Pty) Ltd, said it has started negotiations aimed at selling the company.
“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, which has 30 stores in Zimbabwe.
Added the retailer, “The Possible Sale, which is subject to certain conditions and regulatory approval, is aligned to the strategic intent of Choppies to focus on profitable retail.
“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.”
Zimbabwe has, in the recent few years, seen the proliferation of both registered and unregistered tuckshops in both the residential areas and the CBDs.
While the formal shops are obliged to follow scrupulous business conduct with heavy penalties hanging above their heads for malpractices, the corner shops are often let off the hook, allowing them to charge their goods in hard currency.
Grocery vendors, likewise
