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Choppies Zimbabwe chairman Ambassador Phelekezela Mphoko cuts the ribbon at the opening of the retail chain’s first store in Harare last week. The store is located along Harare Street. – (Picture by Innocent Makawa)

Business Editor—
Choppies Zimbabwe opened its first store in Harare last Friday with the group targeting 40 stores by year five of its presence in the country. The store, which was officially opened by its chairman, Ambassador Phelekezela Mphoko, along Harare Street (ex-Gutsai branch), is one of the four targeted outlets in the short term.

Another branch (again at another old Gutsai) store will be opened along Nelson Mandela Avenue today while the third one would be opened at Highglen on December 15. The fourth outlet will be opened in Queensdale next year.

Choppies Zimbabwe director Mr Sigokogela Mphoko said the retailer has now completed its first year in Zimbabwe with a total of 16 stores.

“Year one has been quite good with the group opening 16 stores. We are very happy we have finally opened in Harare and we hope to continue with the growth momentum.”

Choppies Zimbabwe is a joint venture between Botswana’s Choppies Enterprises and the Mphoko family. The group entered Zimbabwe through the acquisition of 10 retail stores under Sai Enterprises and Chrissfontein Marketing in Bulawayo.

The group plans to expand all over the country over a phased period of between five to 10 years. Under year two the number of stores would grow to 18 with a turnover of $120 million expected.

This would grow gradually to 25 and 35 in year three and four respectively. By year five

40 stores would have been opened with an annual turnover of $350 million projected. The group expects to employ 3 000 people in the period.

The parent company (Choppies Enterprises) in a latest update said all Zimbabwe stores were profitable and margin realisation had been positive, despite the challenging economic conditions prevalent in the country.

The Zimbabwe operations recorded revenue of BWP424,5 million, EBITDA of BWP30,1 million and PAT of BWP18,2 million.

“In the long term Choppies is targeting 60+ stores in Zimbabwe. In terms of logistics a new 6 800 square metres warehouse space has been added in Bulawayo and is fully functional,” said the group.

The entry of Choppies into the Harare retail scene long dominated by two major retailers -OK Zimbabwe and TM Supermarkets – will increase competition for market share.

OK Zimbabwe chief executive Mr Willard Zireva last month told an analysts briefing that OK is cognisant of new entries in the retail space such as Meikles Mega Stores and Choppies .

“Choppies will present competition as customers will certainly be tempted by its nature. In this case, we will continue to maintain market share and expand on branches where opportunity presents,” he said.

Mr Mphoko said Choppies is mainly targeting the low-end and middle-class market.