BULAWAYO — Botswana retail chain Choppies is planning to open four more shops in Zimbabwe before year-end, to bring the total to 18 as it continues to expand its foothold in the country.
The company acquired a 49% stake from Bulawayo based businessman Raj Modi’s investment company, Modi Enterprises, for BWP 180,2 million ($21,2 million), and took over 10 of its outlets that were operating under the Aaro Mart and SPAR franchises in Bulawayo.
The remaining 51% is owned by local entrepreneur Sgokegela Mphoko. At the beginning of the year, the group added three more outlets in Bulawayo, bringing the total to 13. Choppies Zimbabwe chairman Phekezela Mphoko told The Source recently that he board has agreed to plough most of the profits from Zimbabwe operations into expansion.
“When we met in June we agreed that we must add four more shops by end of the year.
“We have been concentrating on Bulawayo, but we are now going to move to Harare,” he said. The group is set to open two shops each in Bulawayo and Harare.
In its financial report for the full year to June 2014, the Botswana company described the performance of its Zimbabwe business as “encouraging” and signalled it will continue to “evaluate expansion opportunities in existing and new markets.”
Choppies is Botswana’s largest retail chain with 63 outlets in Botswana and 13 in South Africa. It was listed on the Botswana Stock Exchange in 2011 and its market capitalisation now stands at BWP 4,9 billion.
– The Source
