Raj Modi Buys Back Choppies Zimbabwe for US$260,000 After US$22 Million Deal
BULAWAYO – Choppies Zimbabwe, formerly a major formal retailer in the country, has officially exited the market, citing economic instability and an unfavorable business climate.
The company, which previously operated 30 stores and employed 1,000 workers, will now be taken over by Pintail for US$260,000.
Pintail, owned by Deputy Industry Minister Raj Modi, originally sold 10 SPAR outlets to Choppies in 2013 for US$22 million, enabling the Botswana-based supermarket chain to establish its presence in Zimbabwe.
However, a Botswana Stock Exchange notice confirmed that Choppies no longer views further investment in Zimbabwe as financially viable.
“While Choppies believes in Zimbabwe’s long-term potential, maintaining profitable operations would require sustained capital injections over an extended period.
At this time, such an investment is not economically feasible,” the company explained.
Despite holding US$2 million in assets including property, plant and equipment as well as US$1.4 million worth of stock, Choppies recorded a US$1 million loss in the sale.
The retailer’s struggles reflect broader difficulties in Zimbabwe’s formal retail industry, largely attributed to strict government exchange rate policies that have made it difficult for formal retailers to compete with informal traders.
These policies require formal businesses to use the official exchange rate, making their products more expensive than those sold by informal traders, who often bypass taxes and rely on cheaper or smuggled goods.
Nehanda Radio previously reported that this uneven playing field has affected major retailers, such as OK Zimbabwe Limited, N Richards Group, Spar, and Pick n Pay, leading to several store closures across the country.
Choppies had already signaled its withdrawal last year, citing a 30% decline in customer foot traffic at formal retail outlets as shoppers increasingly turn to the informal market.
The retailer’s departure further highlights the ongoing shift in Zimbabwe’s retail sector, where informal trading is rapidly overtaking structured business models.
Economic instability has impacted several listed companies, including mining firms, with some now placed under corporate rescue due to financial strain.
The exit of Choppies Zimbabwe reinforces the struggles faced by formal retailers in the country, as businesses continue to navigate shifting consumer behaviors and an unpredictable economic environment.
