Regional supermarket chain Choppies has officially exited Zimbabwe, citing a hostile economic environment marked by currency instability and the dominance of informal traders.
The company, founded in Botswana and operating across four southern African countries, entered Zimbabwe’s retail market in 2013 but found the current conditions unsustainable.
Choppies first announced its intention to leave Zimbabwe in November 2024, pointing to exchange rate policies that drove consumers away from formal retailers. The introduction of the gold-backed Zimbabwe Gold (ZiG) currency in April 2024 further destabilized the market, making operations unviable. 
The Role of the Zimbabwe Gold (ZiG) Currency
The Retailers Association of Zimbabwe (RAZ) raised concerns about the overvalued exchange rate tied to the ZiG, which forced supermarkets to sell goods at prices higher than those offered by informal traders and vendors who operate in foreign currencies.
The ZiG, introduced to stabilize Zimbabwe’s economy, has lost over 50% of its value less than a year after its launch, marking it as the country’s sixth currency attempt since 2019.
SaiMart Takes Over Operations
Choppies’ departure led to the transition of its operations to SaiMart, a company owned by Zimbabwe’s Industry and Commerce deputy minister, Raj Modi. SaiMart acquired a portion of Choppies’ 30-store network for an undisclosed amount.
In a notice to suppliers, Choppies assured stakeholders that operations would continue seamlessly under SaiMart. “All local staff and management have been moved to SaiMart,” the company stated.
Raj Modi expressed optimism about the acquisition, emphasizing plans to expand SaiMart’s footprint while maintaining affordable pricing for customers.
Choppies’ Regional Challenges
Choppies’ exit from Zimbabwe is not its first retreat from a southern African market. In 2020, the chain exited Kenya after years of losses.
Despite its challenges in Zimbabwe and Kenya, Choppies continues to operate in Botswana, Zambia, and Namibia, maintaining a regional presence.
Impact of Currency Instability on Retailers
The collapse of Zimbabwe’s formal retail sector has been exacerbated by the ZiG currency’s rapid devaluation.
Formal businesses are required to price goods based on the official exchange rate of 25.2 to the US dollar, significantly higher than the 40 ZiG per dollar rate prevalent on the parallel market.
The Retailers Association of Zimbabwe warned that this discrepancy threatens the competitiveness of formal retailers. In a letter to the Ministry of Finance, the association called for policy measures to reflect real-time market exchange rate fluctuations, arguing this could help prevent further closures in the sector.
Shift to the Informal Sector
Over the past two years, Zimbabwe has witnessed a significant shift in consumer behavior toward the informal sector.
Vendors operating outside formal retail channels often sell goods in foreign currencies, offering prices that undercut supermarkets tied to the unstable local currency. This trend has driven footfall away from formal stores by as much as 30%.
SaiMart’s Vision for the Future
Despite the challenges in Zimbabwe’s retail sector, SaiMart aims to revitalize the market by leveraging its local knowledge and commitment to affordable shopping experiences.
Raj Modi emphasized the company’s dedication to expanding its operations and maintaining consumer trust through consistent product availability and pricing.
What’s Next for Zimbabwe’s Retail Market?
While SaiMart works to stabilize its newly acquired network, the broader issues of currency instability and unfavorable economic policies remain critical obstacles for Zimbabwe’s formal retail industry.
Without meaningful interventions, the retail sector may face further challenges as informal traders continue to dominate.
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