ABN - Botswana’s budget retailer Choppies will spend US$55 million on an expansion plan across Africa, despite reporting a 47% drop in half-year profit.
The grocery retailer is set to open 36 new stores in 2017 across seven countries in the continent, including Botswana, where it has 202 stores currently in operation.
This planned move outside of Botswana’s borders comes after the company reported a 47% decrease in half-year profit in the six months to December 2016.
In doing so Choppies hopes to compete with larger retailers such as South Africa’s Shoprite, in locations with higher commercial opportunities than the small Mozambique towns where a large proportion of its stores are currently located.
Chief executive Ramachandran Ottapathu said: “We are not shaken by the drop in profit after tax fall as the company is in a growth phase.”
He added that the capital expenditure in Botswana, South Africa, Zimbabwe, Zambia, Kenya, Tanzania and Mozambique will be funded mostly from internal cashflows.