Botswanan multinational grocery and general merchandise retailer, Choppies Supermarket has announced that it will be leaving the Kenyan market.
The decision is coming just 4 years after acquiring supermarket chain; Ukwala stores for 1 billion Kenyan Shillings.
During a general meeting with its shareholders on Wednesday the 4th of September 2019, Choppies revealed that it had put up its Kenyan assets for sale and has also classified its 12 stores as ‘distressed’.
Director of Choppies Wilfred Mpai, told shareholders that, “Zambia has a steady performance in a volatile economy, Kenya’s distressed business has been identified for disposal. Tanzania and Mozambique are distressed while Namibia is performing as expected. In Botswana there is steady income flow under difficult trading circumstances, South Africa North West business is distressed and identified for disposal.”
Choppies, has already shut down two of its outlets; the one in Kiambu and the one in Bungoma.
The retailer, has so far been unable to keep up in the Kenyan retail industry, and that has led to its cash flow shrinking.
Choppies which has its headquarters in Botswana is struggling with a reduction in customer traffic, in addition to members of its staff going months without pay.
A statement issued in July 2019 by the Secretary General of the Kenya Union of Commercial, Food and Allied Workers (KUCFAW); Boniface Kavuvi, revealed that workers at Choppies, have not been paid in full for a long period now.
The multinational grocery and general merchandise retailer, had around 260 branches across Africa. Sadly, that number has reduced to to 48.
The company had also been delisted from the Botswana Stocks Exchange and Johannesburg Stocks Exchange after it failed to release its financial results at the end of the 30th of June 2018.
Choppies had hoped that by entering into Kenyan market, it would take over the vacuum created by Uchumi and Nakumatt Supermarkets, which closed several of their branches across Kenya.
In May 2019 the board at Choppies, fired the then Chief Executive Officer (CEO); Ramachandran Ottapathu, due to a fallout, as well as a decrease in the company’s profitability.
