Our opinion on the current state of CHP

Choppies (CHP) is a Botswana-based grocery retailer with 212 stores which operated in South Africa, Botswana, Zimbabwe, Zambia and Kenya. The company has a primary listing on the Botswana Stock Exchange (BSE) and a secondary listing on the JSE. What is clear is that the grocery market in Southern Africa is fiercely competitive and it will always be difficult for a small operation like Choppies, without the buying power of the larger chains, to compete. For two years this company was suspended on the JSE (from November 2018) and only resumed trading on 13th November 2020. In its results for the year to 30th June 2023 the company reported revenue up 6,4% and headline earnings per share (HEPS) down 7,5%. Retail sales were "driven by sixteen new stores coupled with price growth of 6.8%. Sales volumes increased by 1.6% and excluding the new stores declined by 4.6% on a comparable basis". Clearly, this company is recovering from a torrid period which saw its shares suspended on the JSE for more than two years. There is about R22 000 worth of shares changing hands every day on average - which is insufficient volume even for a small investment.