When Choppies entered Zimbabwe’s retail market in 2013, it did so by buying stores from businessman Raj Modi, who is now deputy Industry Minister. Over a decade later, Choppies is exiting Zimbabwe — and it is Modi taking over the business.
Modi’s SaiMart is taking over a portion of Choppies’ 30-store network for an undisclosed amount. SaiMart hopes to expand from its small footprint of six stores in Bulawayo.
“At SaiMart, we are committed to providing affordable products and making shopping convenient for our customers,” Modi says. “This acquisition is a strategic step toward achieving that goal.”
Choppies has informed suppliers of the transition, saying: “This serves to notify you that the Choppies business in Zimbabwe has been sold to SaiMart. Kindly note that business operations will continue as normal. All local staff and management have been moved to SaiMart.”
The relationship between Modi and Choppies dates back to 2012, when Modi approached Choppies’ CEO and founder, Ottapathu Ramachandran, with a proposal to sell his Bulawayo stores. A year later, Choppies acquired Modi’s Sai Enterprises, which had 10 SPAR outlets. These included Bellevue SPAR, Nkulumane SPAR, Entumbane SPAR, City SPAR, and Down Town SPAR. Modi stayed on as Choppies Zimbabwe’s MD and later re-acquired a 20% stake in Sai Enterprises. However, he exited Choppies in 2015, selling his shares and investing in Pin Tail Trading, which ventured into liquor wholesaling and retail.
Choppies announced its departure from Zimbabwe in November, the result of government’s exchange rate policies which have driven customers away from formal retailers to informal traders.
“In Zimbabwe, over the last two years, there has been a significant shift to the informal retail sector, leaving the formal retail sector to battle a reduction of up to 30% in footfall and having to compete with the informal sector,” Choppies said.
All eyes are now on Modi as he takes over the business. His leadership of SaiMart will be closely watched, given how government has been hostile to formal retailers’ pleas for better policies.
In October 2023, Treasury Secretary George Guvamatanga mocked retailers, telling them innovate to compete with informal traders. “If I was your board, I’d fire you, because you are a useless management,” he told a business meeting.
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