BOTSWANA-BASED GROCER
Choppies expects Jwayelani will help it break even in SA
Share price jumps 6.35% after retailer says its South African operations could break even in 201
Choppies’ share price jumped 6.35% by the close on Tuesday after the retailer said its South African operations could break even in 2017. The turnaround in fortunes comes after the Botswana-based grocer purchased Jwayelani Retail, which has 21 stores in KwaZulu-Natal and the Eastern Cape. Jwayelani has allowed Choppies to diversify its earnings and reduce its reliance on mining towns. When Choppies arrived in SA, the majority of its stores were located in mining towns. These have shown depressed trading patterns over the past two years. In the six months to end-December 2016, Choppies said the South African business had achieved a like-for-like growth in revenue of more than 20%. "Sales grew strongly in the last quarter of the 2016 calendar year and the continuation of this trend will result in SA achieving break-even," the retailer said.
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