Choppies has sold its Zimbabwe operations to Pintail Trading for $260,000 (P3.8 million). Choppies offload the operations to focus on its more profitable operations.
Pintail trading is partly owned by Zimbabwe's deputy industry minister Raj Modi.
"While Choppies believe in Zimbabwe's long-term viability, for the Zimbabwean operations to be profitable, Choppies as a group will need to invest more capital to support its Zimbabwean operations for extended periods. Supporting the Zimbabwean operations further will not be economically viable for the Choppies group at this time," Choppies said.
"Due to the factors mentioned above Choppies has decided to exit Zimbabwe."
Choppies bought 10 SPAR outlets from SAI Enterprises (Pvt) Limited for $22.5 million to kickstart its Zimbabwe operations in 2013. Raj Modi was the majority shareholder of SAI Enterprises at the time of the sale.
Choppies opened its first distribution centre in 2014 and grew to 30 stores in Zimbabwe, employing over 1,000 people.
Choppies announced its Zimbabwe exit in November, citing a significant shift to the informal retail sector, leaving the formal retail sector to battle a reduction of up to 30% in footfall.