By Businesses Reporter | ZimEye | Choppies, the grocery retailer listed on the Botswana Stock Exchange (BSE) and Johannesburg Stock Exchange (JSE), has revealed plans to exit the Zimbabwean market. In a letter to shareholders, the company confirmed that discussions are underway for a possible sale of its Zimbabwean operations, Nanavac (Pty) Ltd, which operates 30 stores in the country. The move comes as part of Choppies’ strategy to “focus on profitable retail.”

The board highlighted the difficulties facing Zimbabwe’s formal retail sector, which has been grappling with a “reduction of up to 30% in footfall” due to competition from the informal sector. Choppies said it has “already invested significant capital to support the operations” in Zimbabwe but now needs to realign its resources.

“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,” the statement read. “Due to the factors mentioned above, we have decided to exit the country.”

The proposed sale, described as a “Possible Sale,” is still subject to regulatory approval and may not result in a finalized transaction. Shareholders were cautioned about the uncertainty: “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.”

Choppies assured shareholders that any updates would be communicated promptly, adding that the company’s decision aligns with its broader goal of prioritizing profitability in its operations. Shareholders were urged to “exercise caution when trading in their Choppies shares until a further announcement is made.”