Almot Maqolo, Staff Writer 
SUPERMARKET chain Choppies Enterprises (Choppies) expects to grow its profit for its financial year ended June 30, 2024 (FY2024) thanks to the positive performance across its regional operations save for the underperforming Zimbabwean unit.
The Botswana headquartered grocer which also operates in Zambia and Namibia has in the past few years exited South Africa, Kenya, Tanzania and Mozambique to cut losses.
The company currently in the process of finalising its financial results for FY2024 due for release on or about September 27, 2024 says indications point to “a mix of promising growth and challenging setbacks.”
Of particular concern is the performance of Choppies Zimbabwe, which has emerged as a notable drag on the company’s overall financial performance.
“Profit after tax from continuing operations is expected to grow in the range between positive 13 percent to three percent.
Profit after tax from continuing operations, excluding the loss making Zimbabwe segment, expected range is between positive 26 percent to 16 percent growth,” the group said in a trading statement.
The development is a manifestation of ongoing challenges in Zimbabwe’s formal retail space where consumer demand remains weak due to an unfavourable business environment.
Formal retailers are compelled by law to use a much discounted official exchange rate for local currency sales while they are faced with high parallel market rates with premiums of over 70 percent when restocking from manufacturers.
According to Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu, suppliers are increasingly demanding an 80:20 USD-ZWG payment split or imposing steep premiums on goods sold in ZWG.
“The fixed exchange rate, coupled with the heavy reliance on USD for sourcing goods, is placing unbearable strain on businesses, especially those operating in the formal sector,” Mutashu said.
“Moreover, the disparity between incomes received in local currency and the demand for USD by suppliers leaves retailers with little room to manoeuvre.”
The CZR is urging swift reforms and a thorough review of the current economic framework to foster a supportive environment for retail and wholesale businesses to thrive. newsdesk@fingaz.co.zw
