Struggling Botswana retailer Choppies Supermarket has closed its Nanyuki based outlet highlighting the store’s dwindling fortunes in the Kenyan market.
The closing of the store, which was located at Nanyuki’s Nanyuki Mall, brings the total number of Choppies’ outlets that have been closed in the country this year to three. In July this year, the retailer shut down operations at its Bungoma and Kiambu Branch citing reduced business in the Kenyan market as the reason that informed the decision. The retailer has also been experiencing stock outs amid rising operation costs which have contributed to the poor run of business.
According to a news report by the Business Daily, the space occupied by the retailer’s Nanyuki branch has already been taken up by local retailer Tuskys Supermarket.
“Choppies enterprises have agreed to vacate the premises to give way to Tuskys supermarket. Tuskys will move in by the end of October,” Ms. Joan Kibui of Nanyuki Mall Limited said in a notice to tenants seen by the Business Daily.
Last month, Choppies retrenched 200 employees from its payroll in a notice letter dated August 31, sent to staff members and it attributed the layoffs to reduced business in the Kenyan market.
“This termination is due to the reduced business which has been running for several months which you are aware of, and the company is unable to sustain the current wage bill, noting that the business has gone down and is taking time for full recovery,” read the notice in part.
Prior to making the layoff announcement, Choppies had revealed plans to exit the Kenyan market.
“Zambia has a steady performance in a volatile economy, Kenya’s distressed business has been identified for disposal. Tanzania and Mozambique are distressed while Namibia is performing as expected. In Botswana there is steady income flow under difficult trading circumstances, South Africa North West business is distressed and identified for disposal,” Wilfred Mpai, Choppies director told shareholders then.