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The largest, most profitable and fastest growing grocery retailer in Africa, outside of South Africa

 

Operating 124 stores and 7 distribution centres in Botswana, South Africa and Zimbabwe

 

The leading supermarket chain in Botswana and growing rapidly and profitably in South Africa and Zimbabwe

 

Well positioned to achieve its target of over 200 stores across six countries by December 2016

 

Listed on the Botswana Stock Exchange with a current market cap of over BWP4.9 billion (ZAR 6.1 billion)

 

NUMBER OF STORES

Number-of-Stores

RETAIL SPACE

Retail-space

TOTAL REVENUETotal-Revenue

 

GROSS MARGINS

Gross-Margins

EBITDA

EBITDA

CUSTOMER

CUSTOMER

 

Lower-to-middle income consumers (LSM 3-6)

 

High-frequency, small basket size, daily shoppers

 

Nearly all cash paying

 

Value conscious, and trust the Choppies brand

LOCATION

LOCATION

 

High traffic areas, such as taxi ranks

 

Peri-urban and small-town shopping centre focus

 

Relatively compact stores (c. 1,500sqm)

CUSTOMER-EXPERIENCE

CUSTOMER EXPERIENCE

 

Longer trading hours than competitors

 

Company owned stores (vs. franchises) provide consistency

 

Obsession with simplicity, merchandising,  and customer experience

Price

PRICE

 

Lowest price based on broad basket of KVIs

 

Centralised pricing introduced in 2014 to drive margin

 

Procurement savings largely passed through

value-added-offerings

VALUE-ADDED OFFERINGS

 

Strong focus on fresh, butchery, bakery offerings

 

High proportion of private label products (14% of revenues)

 

New category development (e.g. take-aways, financial services, travel)

sourcing-distribution

SOURCING AND DISTRIBUTION

 

Market leadership in Botswana strengthens procurement and ability to compete successfully as a new market entrant

 

Decentralised region-wide distribution gives Choppies an advantage over rivals

 

Owned fleet (vs. outsourced)

 

Exceptionally high asset velocity

 

BOTSWANA - OUR CORE MARKET

 

First store opened in Lobatse in 1986 - 72 stores today

 

Choppies has 3 Distribution Centres:

  • Gaborone (10,000m2),
  • Francistown (3,500m2)
  • Lobatse (3,000m2)

 

Choppies has the market-leading position in Botswana with c.34% of the national market

 

Opportunity for further growth as Choppies is well positioned to capture the ongoing shift from informal to formal trade

 

Highly cash generative business will continue to support the Group’s expansion

BOTSWANA-MAP

REVENUE AND GROSS PROFIT MARGIN

BOTSWANA-GRAPH-ONE

STORE GROWTH

BOTSWANA-GRAPH-TWO

SOUTH AFRICA - APPROACHING CRITICAL MASS

 

Choppies opened its first store in South Africa in 2008 in Zeerust - 34 stores today

 

Two Distribution Centres in Rustenburg (10,000m2 and 8,000m2)

 

Rustenburg Distribution Centre has capacity to profitably serve up to 100 stores in a 500km radius of Rustenburg

  • current utilisation only at ±35%

 

Economies of scale expected to deliver profitability in 2H15

 

Profitability and growth were impacted by the platinum sector strike in 2014 but operations have recovered to normal conditions

SA-MAP

REVENUE AND GROSS PROFIT MARGIN

SA-GRAPH-ONE

STORE GROWTH

SA-GRAPH-TWO

ZIMBABWE - OPPORTUNITY FOR RAPID GROWTH

 

Acquired 10 Spar stores in Bulawayo in 2013 –18 stores today

 

Most stores easily serviced with Choppies’ existing supply chain

 

Two Distribution Centres;

  • Bulawayo (6,850m2)
  • Harare (3,000m2)

 

Choppies intends to expand nationwide and there is an opportunity for 30+ stores in Harare alone

 

Private label sales are showing impressive growth

ZIMBABWE-MAP

REVENUE AND GROSS PROFIT MARGIN

 

Revenue at 1H15 reached P395 million

  • (93% of FY14 revenue)

 

Gross profit at 1H15 reached P71 million

  • at a gross profit margin of 18%

STORE GROWTH

ZIMBABWE-graph

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