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Zimbabwe’s Retail Giants On The Brink Of Bankruptcy, Says CZR

4 months agoFri, 15 Nov 2024 11:35:23 GMT
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Zimbabwe’s Retail Giants On The Brink Of Bankruptcy, Says CZR

The Confederation of Zimbabwe Retailers (CZR), the unified voice of the formal retail sector in Zimbabwe, has warned that some of the country’s most well-known brands, including major retail chains, are on the brink of bankruptcy due to unfair competition from the informal sector.

In a paper submitted to the government two weeks ago, which included insights from both retailers and wholesalers ahead of the 2025 National Budget, CZR said that the retail industry is in a precarious state.

The Confederation warned that several retail businesses are struggling to stay afloat and could face closure.

CZR pointed to the recent divestiture of Unilever from the Zimbabwean market, along with the challenges facing clothing giant Truworths Limited as indicators of the severity of the situation. The CZR said:

Long established companies in Zimbabwe, such as Truworths and Unilever, have recently shut operations, with many more businesses on the verge of shutdown.

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As you are aware, our economy is experiencing rapid informalisation, leading to the closure of numerous formal businesses, with many more facing imminent shutdown.

The formal retail sector is struggling to compete with the informal market, characterised by an uneven playing field.

We are increasingly becoming a society of small-scale operators, or tuck shops, which primarily source 95% of their products from runners (informal cross-border traders) bringing goods from Musina (in South Africa). These informal entities evade taxation, statutory obligations, and labour laws.

The retail sector has urged Finance Minister Mthuli Ncube to implement a range of measures to alleviate the crisis.

These measures include zero-rating value-added tax (VAT) on basic commodities, reducing import duties on high-tax products, and removing import permits and licenses for most goods, among other proposals.

More: Pindula News

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29 Comments

Anonymous · 4 months ago
Don't read economic history; write it. Ordinary people don't do what they do based on what economists say; they do what they do based on their everyday reality. Zimbabwe has structural problems in her socio-economic organization. Ordinary people are merely coping up with that. This is just an adaptation. No ordinary person invented tuck shops and US dollars. Our situation made them necessary. Let's fix the disease, not the symptom. Yes, every single shelf in a supermarket shall be rented out. It's called a flea market.
Comrade X · 4 months ago
At independence the economy was the envy of Africa, and the new black leaders were just ordinary leaders. But now the economy is in a sorry state and our leaders (mostly the same recycled leaders) are filthy rich
mudembare · 4 months ago
mxxxx busy supporting small brief case businesses which dnt pay tax,dnt employ many pple,disregard labour laws.surely an economy run by tuckshops and you ****s are happy that tm ,truworth,choppies should close .well it's your time we will see
...,. · 4 months ago
Organised labour with trade unions is a threat to the politics and people seem to be comfortable with the informal sector and the easily controllable public service.
🇿🇼44yrs · 4 months ago
I heard Truworths closed long ago and how many times do you want it to be closed. So many companies that are nolonger operating especially the clothing industry giant companies the likes of Heritage, this other one which used to do Van Heusen Shirts i doubt if it still exist, Concord the suit makers, just to mention a few. Welcome to nyika where we can buy from bhero shame!
Corruptmore Looto · 4 months ago
I have seen the comments of Zanu PF Apologists saying they must go, let's just watch the economy turn into a full force informal economy which doesn't invest, doesn't pay taxes, no pension contributions, yes let's celebrate the tuckshop republic of Zimbabwe which mostly deals with smuggled goods no duties paid whatsoever, yes let's rejoice every space in the CBD being turned into a tuckshop, hurray to former factories being converted into warehouses for storing imported goods from South Africa and China, congratulations to a soon incoming informalisation which doesn't want a local currency only takes the USD so they can repatriate it back home. Wow with all of this one would need to be an **** of elephantine proportions to doubt the middle income economy target of 2030. Praise to Zanu PF for attracting informal traders from all over the region, the Indian sub-continent and China to siphon the USD through their tuckshops. Ladies and Gentlemen the first country in the world to achieve an upper middle income economy anchored on the Republic of the CBD Tuckshops wow just wow. An Upper Middle Income Economy with no strong manufacturing base while the one which is there will be forced to scale down or close as the Association of the CBD Tuckshops only deals with imported goods which are smuggled into the country, aah aaah wait I forget to mention that some are fake products just like the fake colgate which was making the rounds just recently 😅😅, but who cares we soon caught with the charade so what harms done just as long as the industry is dead exacerbated by 24hrs of blackouts but surprisingly heading to an upper middle income economy. I wouldn't blame them for not paying taxes since we never feel our contributions being ploughed back to lessen the load, instead they choose to buy cars so who would blame someone for not paying tax to such a government.
Corruptmore Looto · 4 months ago
ïďïōť
ïďïōť is an ED.i.o.t · 4 months ago
you are one z.a.n.o.i.d f.u.c.k.wit
🇿🇼44yrs · 4 months ago
Well said friend
General · 4 months ago
Team zany pf mauraya nyika
Black-Scorpion · 4 months ago
Republic of tuckshops, that's why we don't have a single mall in Zimbabwe...
laugh emoji1
🧐 🤔 🤨 🤪 · 4 months ago
Zveshuwa mungato gwadamiswa ne informal sector here vanhu vari digitised I think kudaro, isai ma promotion rebrand and repackage your products, tandzwa wee nekutengeserwa substandard product in the name of a dollar 2kg dze rise dzingaite zvima grains zvingani mukati mayo nekuti iii informal haisi genuine we
Anonymous · 4 months ago
Let them close and go. They are supplied with goods from the same manufacturer but the so called formal shops are too expensive. Who on earth go to an expensive shop leaving cheap once. Let the formal compete and if they cannot stand the heat ngavavhare. Uchanzwa umwe achiti heee vanobhadhara rent heee what what, asingabhadhari rent ndiani? Huya kuno kuma tuckshop down town tobhahara rent sezvavanoita ve formal shops but still our prices are lower.
OH · 4 months ago
BUT STILL, YOUR BRAIN CAPACITY IS LOWER TOO !
· 4 months ago
Rent unobhadhara tazvinzwa ko grocery rako unorihodha kupi
jivaschihwehwete@gmail.com · 4 months ago
The big retail shops should review their USD pricing regime. Their products are very expensive in USD, for instance they are making super profits from little sales.
Anonymous · 4 months ago
What supper profits??? Their products are expensive in USD because most of their customers are paying in zig hence they have to cushion themselves against the ever-weakening zig. If they charge less in USD they will make even larger losses when converting to zig compared to what they are making now.
ah um eh ok · 4 months ago
are you a dummy?
Corruptmore Looto · 4 months ago
The cause of the price discrimination is pretty simple, different exchange rates if there was one exchange rate they wouldn't be any of this mess. The firms will inflate the USD prices so as to bring it into line with the ZiG prices since the government will be on their tails
jivaschihwehwete@gmail.com · 4 months ago
if yo would ask yourself which currency is small shops trading in.
Vic Venom · 4 months ago
These large companies truly lack any sense of self awareness...Are you telling me they are feeling the pinch from the small businesses that have to pay more in taxes and lack the backing of the banking system 🤣🤣🤣...The large retailers must be headed by some pretty incompetent nepo-babies because surely no1 in their right mind would throw a hissy fit over the informal sector....Black excellence is coming to the fore and driving away the old relics of colonialism back to their cold continents.....Rant over sanity restored
me · 4 months ago
idzi dzorwara idzi
Z · 4 months ago
WHAT THESE MONOPOLIES CALL INFORMAL TRADERS ARE ACTUALLY THE REAL BUSINESS ENTERPRISES THE GVT LAUNCHED THROUGH THE BLACK EMPOWERMENT POLICY. IF ITS HOT IN THE KITCHEN GET OUT. I LOVE THE SUCCESS BEING DONE BY THESE BUSY BEES. THEY DON'T SLEEP AT ALL. THEY SLEEP IN BUSES WITH THEIR GOODS FROM ZAMBIA TANZANIA RSA BOTSWANA NAMIBIA ANGOLA AND MOZAMBIQUE AND GO TO THEIR VARIOUS SELLING POINTS AND MARKET THEIR WARES. FRUSTRATED BY COMPANIES CLOSING DOWN AND DENYING THEM A SOURCE OF INCOME THESE GALLANT SONS INSTEAD OF REBELLING AGAINST GVT, THEY UNDERTOOK TO DO BUSINESS AND BE MASTERS OF THEIR OWN. NOW THE CAPITALIST IS CRYING FOUL. UNTIL WE OWN THE MEANS OF PRODUCTION AND BE MASTERS OF OUR OWN ECONOMY, THAT INDEPENDENCE IS VALUELESS SO SAID THE FOUNDING FATHER THE LATE FIRST SECRETARY CDE PRESIDENT RG MUGABE. THE WHOLE ECONOMY MUST BE BLACK RUN. LET THEM GO HOME OTHERS WILL TAKEOVER. WE HAVE MILLIONS OF OUR CHILDREN IN THE DIASPORA WHO ARE READY TO COME HOME AND INVEST. YES LET THEM GO. THE INFORMAL WILL HONESTLY BE FORMAL ONE DAY. WHO EVER THOUGHT THOES WHO WERE LABELED TERRORISTS YESTERDAY ARE THE PROUD SOLDIERS OF OUR BEAUTIFUL ZIMBABWE TODAY.
Corruptmore Looto · 4 months ago
No sane person in the diaspora is ready to come back and invest in this hełłhōłe. I wouldn't exactly call importing goods from other countries black empowerment and controlling an economy. We will see how it goes since you guys always dismiss our warnings just like in 1997 and the early 2000s, you will never learn will you
Z · 4 months ago
SORRY GUYS I MUST HEREBY STATE THAT I, Z, AM A Z.A.N.O.I.D BOOTLICKER OF THE HIGHEST ORDER. MY BRAIN DID NOT FULLY DEVELOP AS I GREW UP, SO ALL I AM LEFT WITH IS BOOTLICKING ED AND HIS SCUMBAGS FOR A FEW CRUMBS HERE AND THERE FROM ZANU PF
Patz · 4 months ago
Ngavhare vaende. Ndovharikutokanganisa zvinhu
Chinese economist · 4 months ago
The uncertainty of Hope. Lord help Zimbabwe,

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