Botswana retailer, Choppies supermarket has secured its first deals with unspecified high-end malls in Nairobi and other towns, marking a major stride for the retail brand that is keen to begin operations before year end.
The chain’s regional director Vijay Kumar confirmed yesterday in statement that the retailer has already signed deals with four high-end malls and upcoming ones in Nairobi, two in the outskirts of the city and one each in Narok, Nakuru and Eldoret.
Choppies command 30 per cent of the retail market in Botswana and also has presence in South Africa, Zimbabwe and West Africa, targets A-rated clients presently charmed by Nakumatt and Carrefour supermarkets.
The chain had last month tipped Kumar, former Group Finance Director at Nakumatt Holdings to head its regional operations in Kenya, Uganda, Tanzania and Rwanda.
“We expect to open our first store mall before end of the year. Our experience as a multi-national retail chain will help us offer customers the best value for money, convenience and household items ranging from groceries to electronics,” said Kumar.
The company has announced plans to set up 40 stores by 2020 with a projection to grow its stores at a compound annual growth rate (CAGR) of 6.4 in the next five years. CAGR is the mean annual growth rate of an investment over a specified period of time longer than one year.
The announcement comes in the wake of growing interests from global retain chains keen to set up locally, buoyed by increasing top-notch malls.
Choppies enjoys dual listing at the Botswana Stock Exchange and South Africa’s Johannesburg Securities Exchange.
In the recent past, it has ventured into different formats of stores in several countries including hypermarkets, supermarkets and convenience stores to increase the footfalls, basket values and profitability.