Choppies is officially withdrawing from the South African supermarket sector after reaching an agreement to sell its Jwayelani chain and associated meat processing plant to the Shingai Group. The Botswana-based retailer has entered into binding agreements to transfer 100% of its shareholding in Business Venture Investments, which operates 45 Jwayelani-branded community supermarkets along with its KwaZulu-Natal meat processing facility.
This sale, involving the black-owned Shingai Itai Consortium led by Shingai Retail Investments, marks Choppies’ complete exit from supermarket operations in South Africa. The transaction, which has the backing of Africa’s largest retailer, Shoprite, is pending competition and regulatory approval, with completion expected by the end of November.
Choppies noted that this divestment will enable the company to streamline its operations and focus on its strategic priorities while ensuring the Jwayelani stores can continue to thrive under new ownership, promoting long-term sustainability.
Philisiwe Sibiya, CEO of Shingai, expressed intentions to revitalise the Jwayelani brand as a neighbourhood discount chain and to create a supportive food platform for black-owned producers, farmers, and suppliers. She highlighted the brand’s loyal customer base and her desire to reconnect it with its roots.
In recent years, Choppies has exited several markets, including Kenya, Tanzania, Mozambique, and Zimbabwe, largely due to underperforming operations and unsustainable losses. The company aims to concentrate on more resilient markets, such as Botswana.
Having debuted on the JSE in 2015, Choppies has seen its valuation decline by over 60%, resulting in a market capitalisation of R3.5 billion. Despite this, investors have responded positively to the strategic reforms, with a more than 100% increase in share price over the past six months and 160% over the past year.
On Monday, Choppies reported improved sales and a gain in market share for the year ending June 2025. The company attributed its stronger performance to the opening of numerous new stores, higher prices, and increased customer traffic. However, profits were pressured by rising costs, one-off charges, and a larger tax bill, leading to a reduction in shareholder payouts.
While Choppies experienced growth in existing stores, the overall bottom line showed weakness due to higher expenses related to store rollouts, inflation, and losses from discontinued operations. An increase in the tax rate, largely resulting from unrecovered losses in Namibia and the exit from Zimbabwe, further complicated matters. The retailer’s liquor division, Liquorama, continued to struggle under intense competition and illicit alcohol imports, which have squeezed profit margins.