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:
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Long established companies in Zimbabwe, such as Truworths and Unilever, have recently shut operations, with many more businesses on the verge of shutdown.
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.
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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.
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Zimbabwe's big stores might close because of competition from small sellers. A group called CZR is worried that well-known brands like Truworths and Unilever may shut down soon. CZR says small stores are taking business from big ones, and not paying taxes or following rules. To help, CZR wants the government to remove taxes on basic things, lower taxes on some items, and make it easier to import goods. The big stores hope this will help them survive.

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