- Botswana achieves double-digit growth
- Plans to introduce hardware stores in Namibia and Zambia underway
GAZETTE REPORTER
Choppies is set to bolster its presence in Botswana by targeting regions where it currently has no stores.
This expansion aligns with the Group’s strategy of strengthening its recently acquired Kamoso Group and broadening its product offerings across southern Africa.
Group CEO Ramachandran Ottapathu said in the Choppies Integrated Annual Report for 2024: “We are also looking to strengthen the Kamoso Group’s operations, as we believe this will give us good mileage in terms of revenue and profitability.”
Debt-free organisation
Despite economic headwinds, including inflation and severe drought across Botswana, Zambia and Zimbabwe, Ottapathu expressed optimism, underscoring Choppies’ commitment to becoming a debt-free and resilient organisation.
The CEO pointed out that Choppies is already taking proactive steps to mitigate the effects of climate change on its business.
“Climate change is becoming a more prevailing concern in our business, and we are responding accordingly,” he said, noting that weather-related challenges have impacted supply chains and logistics across the region.
Falling commodity prices
Another economic hurdle for the company is the falling prices of diamonds, which are crucial to Botswana’s economy.
“Commodity prices dropping, particularly diamonds, are a concern as it is a major driver of the economy,” Ottapathu noted.
To navigate these difficulties, Choppies has diversified its supplier base, sourcing products from new markets to keep prices competitive.
The company has also adopted cost-saving logistics measures, including crossloads and backloads to ensure that trucks are fully utilised on return trips between countries and stores.
Landlocked
“Three of the countries in our portfolio are landlocked, so logistics is the biggest cost, and we are therefore focused on optimising this,” he said.
Choppies’ financial performance over the past year has shown promising signs, with Botswana achieving double-digit growth. However, Ottapathu noted that fully integrating the Kamoso Group acquisition, finalised in mid-2023, has taken time.
“Given that approval was only received in July 2023, operations only kicked off properly in September, which was soon followed by the December lull,” he noted. “We are only now seeing traction from our strategy implementation.”
Liquor and hardware
The Kamoso Group, which faced operational and management challenges before the acquisition, is beginning to show improvement under Choppies’ management.
Ottapathu expressed confidence in the acquisition’s long-term value, especially as the retailer expands into the liquor and hardware segments.
“These two retail offerings fit perfectly in our strategy of long-term segmental growth,” he said, adding that plans are underway to roll out hardware stores in Namibia and Zambia.
Embracing data-driven technology has also been central to Choppies’ strategy. In the past year, the company adopted the Slimstock demand forecasting software in Botswana and is now expanding its rollout to Namibia, with plans for Zambia next.
Basket and time analysis
“Last year was the first year of fully adopting data in an appropriate manner to help achieve our desired business outcomes,” Ottapathu said.
Going forward, Choppies will use data to analyse consumer trends, including basket and time analysis, to enhance customer engagement.
Looking ahead, Ottapathu remains optimistic about Choppies’ growth trajectory and value to shareholders.
“We are happy with the progress we have seen regarding the implementation of our strategy and are confident that it will continue to unlock value for shareholders as we have expanded our retail offering,” he said.