Choppies Zimbabwe has left the country after facing economic problems. The retailer once ran 30 stores with 1,000 employees but sold its business to Pintail for $260,000. Pintail belongs to Deputy Industry Minister Raj Modi, who previously sold his SPAR stores to Choppies for $22 million back in 2013. The Botswana company decided Zimbabwe needs more money than they can invest right now.
Despite having $2 million in assets, including property, equipment, and $1.4 million in stock, Choppies lost $1 million on the sale. Government exchange rate rules made it hard for regular stores to compete with street vendors. These policies force official businesses to use the bank rate, making their products cost more than items from sellers who skip taxes or use smuggled goods. Customer visits to formal stores fell 30 percent as shoppers turned to cheaper informal markets.
The exit adds to the troubles facing other major retailers like OK Zimbabwe, N Richards Group, Spar, and Pick n Pay. Several shops have closed across Zimbabwe as the retail landscape changes dramatically. Mining companies have also struggled with financial problems during this economic crisis. Formal businesses keep fighting to survive as consumer habits change in an unstable economy.
Despite having $2 million in assets, including property, equipment, and $1.4 million in stock, Choppies lost $1 million on the sale. Government exchange rate rules made it hard for regular stores to compete with street vendors. These policies force official businesses to use the bank rate, making their products cost more than items from sellers who skip taxes or use smuggled goods. Customer visits to formal stores fell 30 percent as shoppers turned to cheaper informal markets.
The exit adds to the troubles facing other major retailers like OK Zimbabwe, N Richards Group, Spar, and Pick n Pay. Several shops have closed across Zimbabwe as the retail landscape changes dramatically. Mining companies have also struggled with financial problems during this economic crisis. Formal businesses keep fighting to survive as consumer habits change in an unstable economy.
