• Choppies has sold its operations to Sai Mart, effective January 1, 2025, due to struggles under unfavourable government policies favouring informal traders
• The decision follows Choppies' indication in November that it would sell its operations in Zimbabwe to focus on sustainable growth and profitability in other regions
• The transition occurs in a difficult environment for formal retailers, with a 30% decline in foot traffic due to the growing informal retail sector

Harare-Choppies has sold its operations  to Sai Mart effective 1 January 2025 due to  struggling under the weight of unfavourable government policies favouring informal traders.

This follows after the retailer had hinted that it is going to sell its operations in Zimbabwe market in November last year, citing a strategic decision to focus on sustainable growth and profitability across its regional operations.

Sai Mart is owned by Industry and Commerce Deputy Minister Raj Modi who has been operating six branches in Bulawayo and will now take over Choppies’ operations across the country.

In a statement, Choppies assured stakeholders that the transition would be seamless, with no job losses for employees.

“This serves to notify you that the Choppies business in Zimbabwe has been sold to Sai Mart. “Kindly note that business operations will continue as normal, without any disturbances,” read the notice.

This transition marks the end of Choppies’ 11-year presence in the country, where it operated 30 outlets and employed around 1,000 workers.

The takeover comes amid a challenging environment for formal retailers.

Over the past two years, the informal retail sector has gained considerable ground, leading to a  30% decline in foot traffic for businesses like Choppies.

The company attributed its departure to policies that disproportionately benefit informal traders, despite the critical contributions of formal retailers to Zimbabwe's economy.

In a pointed statement, Choppies emphasized that it had invested significantly in the local market to support livelihoods but found the conditions increasingly untenable.

The government mandates that formal retailers sell products at official rates, which many perceive as inflated and disconnected from actual market dynamics.

For example, while a bottle of cooking oil costs about US$3.50 in the informal sector, it is priced at over US$4 in formal stores.

The informal sector enjoys advantages such as tax evasion and the ability to import cheaper, often lower-quality products from neighbouring countries.

In contrast, formal retailers adhere to higher quality standards, producing goods like vitamin A-fortified sugar, which meet regulatory requirements but come at a higher price.

This discrepancy created an uphill battle for Choppies, which had navigate a complex landscape of taxes and regulations while striving to offer quality products.

As Choppies exits, the mantle has passed to SaiMart, led by business man Raj Modi, who has previously owned Choppies.

Modi's acquisition of Choppies’ stores marks a strategic move to expand his business, which had previously operated with a limited footprint of just six stores in Bulawayo.

 "At SaiMart, we are committed to providing affordable products and making shopping convenient for our customers," Modi stated, highlighting his vision for the newly acquired business.

The relationship between Modi and Choppies dates back to 2013 when Choppies entered the Zimbabwean market by purchasing stores from Modi.

Over the years, as Choppies faced mounting challenges, it became clear that the competitive balance was shifting toward informal traders.

The government’s response has been mixed; while there have been calls for improved policies to support formal retailers, the reality on the ground often tells a different story.

Choppies’ exit serves as a cautionary tale for formal retailers operating in Zimbabwe.

Despite their efforts to provide quality products and support local economies, they find themselves at a disadvantage in a landscape increasingly dominated by informal competition.

With SaiMart now at the helm, all eyes will be on how Modi navigates these challenges and whether he can successfully position his business in a market that continues to evolve.

The takeover by SaiMart highlights the complexities of doing business in Zimbabwe and raises important questions about the future of retail in the country.

Will Modi's leadership bring about a new era for retail, or will the challenges that plagued Choppies continue to hinder growth?

In 2024, largest retailer OK Zimbabwe failed to break even citing death of retail markets courtesy of informal  retailers and rumours are saying it is likely to close 10 of its shops this year.

Metro Peech and Brown closed its operations last year while food world has been shutting some of its shops.

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