The proposed takeover of assets in Gaborone and Palapye comes as Botswana shoppers contend with rising prices and shrinking shopping baskets.
BONGANI MALUNGA
Shoprite is seeking to expand in Botswana’s grocery market through a proposed acquisition of selected assets from the Square Mart Food Lovers Market operation in Gaborone and A1 Supermarket in Palapye.
A Competition and Consumer Authority (CCA) merger notice issued on 8 October names the buyer as Retail Holdings Botswana, trading as Shoprite, and the sellers as The Square Mart (Pty) Ltd and A1 Supermarket (Pty) Ltd. The deal covers stock, movable assets and trade licences, not an outright purchase of the companies.
“After completion of the merger, the Acquiring Enterprise shall control and operate the Target Businesses,” the CCA stated.
PRICE PRESSURES
The move comes as supermarket operators compete for increasingly price-conscious customers. Bank of Botswana figures put annual inflation at 9.3 percent in August 2026, adding pressure to household budgets.
Sefalana’s audited results for the year ended April 2026 highlighted a change in shopping habits. “Consumers are visiting our stores more frequently than previously but basket sizes have fallen,” the retailer reported, noting stronger demand for necessities, value packs and private-label products.
Shoprite could use its distribution networks, bulk-purchasing capacity and supplier relationships to improve product availability and reduce operating costs, potentially increasing pricing pressure on competitors.
REGIONAL MOMENTUM
For the 52 weeks ended June 2026, JSE-listed Shoprite Holdings reported merchandise sales of R270.8 billion, up 7.2 percent from the previous year.
Its supermarket operations outside South Africa grew sales by 11 percent. An expanded Botswana network could also provide more opportunities for local farmers and food manufacturers to supply fresh produce and locally made goods.