N Richards, one of Zimbabwe’s largest retailers, has closed its outlets in Hatcliffe and Tynwald, further highlighting the challenges plaguing the formal retail sector as businesses struggle under economic pressures.
A number of Zimbabwe’s most well-known brands, including prominent retail chains, like OK Zimbabwe, are reportedly facing imminent bankruptcy due to the ongoing economic crisis that has pushed them to their limits.
According to reports, these are grappling with difficulties in restocking due to the ongoing ZIG crisis.
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The Confederation of Zimbabwe Retailers (CZR), which regularly presents carefully-worded insights to the government, has raised alarms over the sustainability of formal retail shops, citing that the dual currency system, which forces retailers to accept Zimbabwean dollars while operating in a dollarized supply chain, contributes to this instability.
CZR emphasized the severe impact of these closures on the industry, stating: “The continued closure of formal retail and wholesale businesses underscores the crisis. The fiscal, monetary, regulatory, and statutory frameworks have created an uneven playing field. While formal businesses crumble, the informal sector thrives unchecked, eroding market share.”
The country’s formal retail landscape has been unable to compete with the unregulated informal market, which benefits from evading taxes, licensing fees, and compliance with labor laws.
Reflecting on the current situation, CZR has urged authorities to intervene and stabilize the sector urgently.
