Choppies struggles to make its mark in tough SA conditions
The grocer has not found a suitable business model for SA as tough economic conditions bite
Botswana-based Choppies may be a well-established grocery retail chain in many parts of sub-Saharan Africa, but the company has found the going tough in SA.Choppies expanded its footprint into the local market in early 2015 and listed on the JSE’s main board in May of that year.The grocer was punted as one of the continent’s fastest-growing retailers and investor hopes were relatively high that it could forge its own path by offering a shopping experience different to that of Shoprite, Massmart or Pick n Pay.But the intricacies of finding a business model that works for consumers in SA and the added challenge of an economy in a slump has meant that Choppies has struggled to find its footing.While prospects for the company looked promising in its established regions, the picture remained murky for it in SA, Exotix equities analyst Anthea Alexander said."We are cautiously optimistic that indications of firmer commodity prices and better rainfall will contribute to slightly better grow...
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