Table of Contents
Key Points
- Botswana-based Choppies Enterprises finalizes sale of its 30-store Zimbabwean operations to Sai Mart, citing economic instability and shifting consumer trends.
- Bulawayo-based Sai Mart acquires Choppies’ stores nationwide, increasing its footprint from eight to 30 locations and retaining 1,100 employees.
- The retailer prioritizes growth in Botswana, South Africa, and Zambia, exiting Zimbabwe due to declining formal retail traffic and economic challenges.
Choppies Enterprises, a Gaborone-based supermarket chain led by Botswana retail tycoon Ramachandran Ottapathu, has officially exited Zimbabwe after finalizing the sale of its 30-grocery stores managed under its wholly-owned subsidiary, Nanavac (Pty) Ltd, to Sai Mart, a local retail chain owned by Bulawayo-based businessman Raj Modi.
The move marks a strategic retreat from Zimbabwe, a market where Choppies had operated since 2013. The retailer cited a challenging business environment and a shift in consumer behavior—characterized by increasing reliance on the informal retail sector—as key factors behind the decision.
Choppies exits Zimbabwe amid retail sector hurdles
Choppies entered Zimbabwe through the acquisition of several Spar supermarkets and expanded rapidly, establishing 30 stores under its local subsidiary, Nanavac (Pty) Ltd. However, in recent years, Zimbabwe’s formal retail sector has struggled as economic instability, rising inflation, and a shift toward informal trading have eroded customer traffic.
With formal retailers seeing a 30 percent decline in foot traffic, Choppies struggled to maintain profitability, leading to its decision in November 2024 to divest from the market. The exit is part of a broader regional consolidation strategy, allowing Choppies to focus on more profitable markets such as Botswana, South Africa, and Zambia.
Sai Mart expands nationwide
For Sai Mart, the acquisition represents a significant expansion. Previously operating six stores in Bulawayo and two in Plumtree, the company now has a national footprint of 30 locations, with a major rebranding initiative already underway.
“We acquired all the Choppies outlets, not only in Bulawayo but nationwide,” Modi said in an interview. “We bought everything and retained all the workers—about 1,100 employees—ensuring stability for the workforce.”
The rebranding will roll out in phases, beginning with Bulawayo, then extending to Gweru, Gokwe, Mutare, and Harare, as Sai Mart seeks to position itself as a leading player in Zimbabwe’s grocery retail sector.
Choppies prioritizes sustainable growth
Choppies, co-founded by Ramachandran Ottapathu and Farouk Ismail in 1986, is Botswana’s largest retail chain, with a distribution network spanning South Africa, Zambia, and Kenya. Listed on the Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE), the company has been refocusing on sustainable growth after past financial and operational hurdles.
Exiting Zimbabwe aligns with Choppies' strategy to prioritize high-return markets with lower capital exposure. As it strengthens its position across Botswana, South Africa, Zambia, and Kenya, its departure underscores structural challenges in Zimbabwe’s retail sector, where the informal economy dominates consumer spending.
