Botswana retailer Choppies plans to launch two new stores in Kenya investing Sh243 million in capital expenses.
This will bring the number of the retailer’s stores to 14 outlets in just three years. The retailer entered the Kenyan market with 9 stores after acquiring Ukwala branches.
“The market is ripe for a turnaround, and we are hopeful that this will pay off. Planned to revamp of stores taken over from Ukwala have started, and we expect to finish renovations by end of July 2018,” the retailer said in an investors briefing.
Choppies operates in eight countries and will have a total of 247 branches by the year-end.
In Botswana, the retailer will not open any branches as it seeks to diversify revenue from its traditional base and hedge continued subdued economic activity and increased competition.
In terms of revenue, it has managed to reduce dependency on Botswana (from 49 percent revenue contribution in HY 2017 to 40 percent contribution in HY 2018) with South Africa contribution rising 6 percent.
Under the new political dispensation, in Zimbabwe, the retailer expects the economy to rebound quickly having lined up a few initiatives in the pipeline to streamline financial services.
“We expect a significant turnaround once the necessary financial approval is obtained from regulatory authorities,” Choppies said.
In Tanzania, the retailer expects to open the third store by the end of May 2018 – this will provide some good volumes, as it will be the biggest Choppies retail outlet in Tanzania.