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Choppies To Sell Zimbabwe Business As Tuckshops Take Over Retail Sector

4 months agoSat, 30 Nov 2024 05:08:49 GMT

Choppies To Sell Zimbabwe Business As Tuckshops Take Over Retail Sector

Botswana’s retail giant, Choppies Enterprises Limited, has revealed plans to divest from its wholly-owned subsidiary, Nanavac (Pty) Ltd, which operates as Choppies Zimbabwe. The sale is subject to regulatory approval.

In a notice issued to the Botswana Stock Exchange (BSE) on November 29, Choppies highlighted a significant shift in Zimbabwe’s retail landscape over the past two years, with a growing trend towards informal retail activities. Reads the cautionary announcement:

The Listings Requirements of the Botswana Stock Exchange (“BSE”) require the Company to announce any circumstances or events that have or are likely to have a material effect on market activity or the price or value or trading of the Company’s securities.

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.
Choppies Zimbabwe is wholly owned by the Company and is a grocery retailer with 30 stores in Zimbabwe.
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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.
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.
While we believe in the country’s long-term viability, Choppies as a group needs more capital to support its Zimbabwean operations for extended periods and has already invested significant capital to support the operations.
Due to the factors mentioned above, we have decided to exit the country.
Shareholders are cautioned that there is no certainty at this stage that the discussions will lead to a formal transaction, and approval from the Zimbabwean Competition and Tariff Commission is required.
Accordingly, shareholders are advised to exercise caution when trading in their Choppies shares until a further announcement is made.
The Company has a primary listing on the BSE and a secondary listing on the JSE.

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35 Comments

𝐧𝐡𝐮𝐛𝐮 · 4 months ago

hameno iiiiiii

Sir African · 4 months ago

Some people celebrate mediocrity .Informal sector does not benefit government, the taxes they indirectly pay are not enough to sustain the broke government. Very soon ,government will fall as it will not be able to pay civil servants.Pizza tax ,meat pie tax French fries tax,fried chicken tax and ice cream tax will not quench the government's appetite for money to buy trinkets forVenes'blue eyed boys.

Anonymous · 4 months ago

You must be joking. When they can't pay bonuses they will do what they always do. Raid your bank account and tell you your money never existed.

Corruptmore Looto · 4 months ago

It seems like everyone is opening somesort of tuckshop in the CBD, most buildings are being renovated to accommodate the guys. But people should also remember one thing, that is the country still has a ****ly high unemployment rate and saturating the market with informal retail outlets is a very bad idea, who is gonna buy from all of them if people are struggling to find money. This is only going to result in further trouble in the future, but just like anything in Zim people don't heed warnings, we shall see what the retail landscape will look like in 10-15 years to come.

Optimus · 4 months ago

In 10 years things will have changed this is unsustainable, it's suicide.

man · 4 months ago

choppies kuzodhurawo mhani aah

🦍 · 4 months ago

sometimes other big sectors will always blame small sectors for their failures. Its not that the failure is attributed to small tuckshops, thus a scapegoat they are using. They failing to point out the failure of their business to the ever dying economy. A big company succumbing to tuckshops come on lets be for real, they should confident and say the economy is no longer suitable for ourbusinesses operation period

👀👀 · 4 months ago

zvinotaurika here ,bt ndoochokwadi kt havangagarire zig,

· 4 months ago

Nyaya iripo ndeyekuti Gvm inoisa mitemo inotsimbirira ma big shops zig rinonzi ngarotenge ikoko vakariramba vanosungwa. Ma tuckshops vanoita zvavanoda vanotengesa ne us$ chete havamanikidzwi kutambura zig saka maShops mahombe vari pama 1.

mudembare · 4 months ago

are those tuckshops creating employment for youths .are they paying corporate tax.surely can a country be a country of informal traders

peturu ⛽ · 4 months ago

ukavhura tuckshop hauna kuzviita employ here nhai bhururu. I'm sure on tax they do pavanohodha they pay tax but somehow no sales tax

Payday Today for Data for Zanoid s · 4 months ago

Hooray, its the last day of the month, and all the zanoid apologist bootlickers are back online here in the comments. You can see they have just received their $3 monthly airtime from their zanu handlers and here they are wasting it all, in a few days they will be broke, out of sdata and gone again for the rest of the month until the end of december when they get their next $3 from their zanoid masters... enjoy. And all you zanoids must remember that in 2028 you will get much less chicken inn becoz of the new taxes coming up next year.. hahaha

Z · 4 months ago

WHEN CAPITALISTS THROW IN THE TOWEL , WE REJOICE BECAUSE THE REAL INDIGENOUS BLACKS MARK A SIGNIFICANT VICTORY. ITS A WAR BETWEEN DAVID AND GOLIATH. SLOWLY AND POORLY EQUIPPED DAVID IS WINNING. WE LOOK FORWARD TO OK ZIMBABWE HADDON AND SLY TO MENTION A FEW TO FOLLOW SUIT. UNTIL THE ECONOMY IS PLACED IN THE HANDS OF BLACKS AND WE OWN THE MEANS OF PRODUCTION OUR FREEDOM AND INDEPENDENCE WILL BE MEANINGLESS. STEP BY STEP BRICK BY BRICK WE SHALL OVERCOME EVERY CORNER WHERE THESE SUCKERS OF OUR SWEAT ARE GROUPED .. SURELY THESE SO CALLED INFORMAL TRADERS WILL ONE DAY BE FORMAL. WATCH THIS SPACE.

Optimus · 4 months ago

The issue here is not the colour of the skin. The issue is about economic landscape. If it was about skin color why isn't there any black skinned businessman opening up and running a successful supermarket. Why is there prevalence of tuckshops which sell expensive products compared to regional and international markets. It's about bad economic policies. Even without white investments in our country, our black investments cannot survive because the environment doesn't support life.

Corruptmore Looto · 4 months ago

Do you even know the downtown area of Harare, that place is full of non-black owners, most are foreigners, I don't know what the heck you are busy celebrating about. People need to remember that when the economy tanked in the 2000s that's when most of these people came in and they snatched all of informal retail sector in Harare because the previous owners were selling it cheap so as to make ends meet in the chaos. Black Zimbabweans didn't have any real money as their savings had been wiped out. Besides an informal economy is nothing to celebrate, recently Gov was complaining about fake products and illegal imports that is a direct result of the ever growing informal sector.

Anonymous · 4 months ago

This is probably the same clown who went around during the land invasions and was shouting that it was to the benefit of the average people who would be given land. How did that go? OK is owned by African entrepreneurs. I don't use black, because that is a derogatory statement meant for those who promote self interest over the interests of the community at large. The only suckers in this country are you and your degenerates who steal peoples pensions, make your own civil servants into beggars whilst pointing the finger at every other person who is trying to offer value to Zimbabwe as a whole, using the same excuse as every other time you have failed, the colour of other's skin. If it isn't whites, then its asians, then its another tribe. Shameful. You clearly have no shame for what you are doing to this country.

Anonymous · 4 months ago

These are the issues Ministry of finance and economic development should address rather that turn it into a ministry of TAX OPPORTUNITY IDENTIFICATION AND IMPLEMENTATION!

Black forest · 4 months ago

it's a pity that our dear brothers and sisters will be losing their Jobs as a result of the closure .

Tintin · 4 months ago

you have been chopped out of business 😁

Peter Chikomba · 4 months ago

don't come back 😭😭😭

Mp · 4 months ago

hamba gowani

𝙎𝙞𝙮𝙤𝙮𝙤 · 4 months ago

the exit is because of heavy losses in Zimbabwe due to poor governance by the rulling ZANU PF. ED said Zimbabwe is open for business but later robbed the investors through banking syst...

Elprof · 4 months ago

Some are making profits in the same economy where others are succumbing to losses. Who has problems here?

Anonymous · 4 months ago

Those who pay taxes and those who don't.

hh · 4 months ago

lala ngokhutula

peturu ⛽ · 4 months ago

nobody would buy choppies as a business but buy choppies business premises and turn them into shoppies

Wickneri · 4 months ago

machoppies agora anotorenta..that's why u saw imwe yemuGweru yakambokandirwa masinhi panze

Ediots · 4 months ago

Thats one of them Zanu Pf backed retailers. its good riddance. If Mpoko can feel the heat imagine the unpolitically shielded. You can rig elections but can never rig the economy

Mp · 4 months ago

Choppies Ngayende Ngayende useless shops not adding value to community especially choppies Luveve Ngayende hamba vele usupuzile

Suomynona · 4 months ago

Think hard and deep about why that is. Some weeks ago, there were similar sentiments by some retail giants and I saw, what I can only describe as ignorance OR lack of t****ugh understanding from my African brothers and sisters.

Optimus · 4 months ago

There is a lot of misunderstanding of economic and political dynamics in most of our brothers and sisters. Other than the economics what saddens me the most is the tribalism that is being fermented in this country. What we should understand is that it is not the ordinary Shona/Ndebele(/any other Zimbabwean tribe) that started these tribal moves and that is actually perpetuating them. The elite who are stealing from us benefit more if we are divided and fight amongst ourselves. We have a common enemy and he plays on our minor differences.

Nyamatsatse · 4 months ago

unofunga nemudhoto iwe

@Mp · 4 months ago

Ngayende kupi? ko what about the workers and their families where do they start? iwe Mp you have smell of ZANU pf, selfish and eveil.