CHOPPIES AT A GLANCE

  • botsswana map bsv
  • The largest, most profitable and fastest growing grocery retailer in Africa, outside of South Africa
  • Operating 124 stores and 7 distribution centres in Botswana, South Africa and Zimbabwe
  • The leading supermarket chain in Botswana and growing rapidly and profitably in South Africa and Zimbabwe
  • Well positioned to achieve its target of over 200 stores across six countries by December 2016
  • Listed on the Botswana Stock Exchange with a current market cap of over BWP4.9 billion (ZAR 6.1 billion)

TRACK RECORD

NUMBER OF STORES
Number-of-Stores1

RETAIL SPACE

Retail-space1

HOW DOES CHOPPIES COMPETE

CUSTOMER
  • Lower-to-middle income consumers (LSM 3-6)
  • High-frequency, small basket size, daily shoppers
  • Nearly all cash paying
  • Value conscious, and trust the Choppies brand
LOCATION
  • High traffic areas, such as taxi ranks
  • Peri-urban and small-town shopping centre focus
  • Relatively compact stores (c. 1,500sqm)
CUSTOMER EXPERIENCE
  • Longer trading hours than competitors
  • Company owned stores (vs. franchises) provide consistency
  • Obsession with simplicity, merchandising,  and customer experience
PRICE
  • Lowest price based on broad basket of KVIs
  • Centralised pricing introduced in 2014 to drive margin
  • Procurement savings largely passed through
VALUE-ADDED OFFERINGS
  • Strong focus on fresh, butchery, bakery offerings
  • High proportion of private label products (14% of revenues)
  • New category development (e.g. take-aways, financial services, travel)
SOURCING AND DISTRIBUTION
  • Market leadership in Botswana strengthens procurement and ability to compete successfully as a new market entrant
  • Decentralised region-wide distribution gives Choppies an advantage over rivals
  • Owned fleet (vs. outsourced)
  • Exceptionally high asset velocity

BOTSWANA

The first store in Botswana was opened in Lobatse in 1986. Since then there are now 72 Choppies stores throughout Botswana. Choppies has 3 Distribution Centres:
  • Gaborone (10,000m2)
  • Francistown (3,500m2)
  • Lobatse (3,000m2)
Additionally Choppies holds the market-leading position in Botswana with c.34% of the national market The opportunity for further growth as Choppies is great as the group is well positioned to capture the ongoing shift from informal to formal trade. The highly cash generative business will continue to support the Group’s expansion.