(Last Updated On: May 13, 2015)
Leading supermarket chain in Botswana Choppies Enterprise is set to set foot into the Kenyan market by the end of 2015.
This is due to the attractiveness of the Kenyan growing middle class and increased spending power. Currently Choppies has 7 distribution centers and 125 retail outlets. These are 72 stores in Botswana, 35 in South Africa and 18 in Zimbabwe.
Kenya’s retail formal market penetration stands at just a tiny 30%. Majority of the formal outlets are located in urban areas plus are dominated by Nakumatt and Tuskys.
Choppies will be looking for an acquisition when entering the market. It has a market capitalization of Ksh50 billion ($520 million). It had revenues of Ksh48 billion in 2014. It plans to list on the Johannesburg Stock Exchange so as to raise around Ksh4.6 billion.
Other new retail giants salivating at the Kenyan retail market are Carrefour which will open at The Hub in Karen and Two Rivers Malls and South Africa’s Massmart which tried to acquire family owned Naivas. Major supermarkets in Kenya are owned by families with only Nakumatt enjoying great management without any sibling rivalry.