Breaking News

Inflation hits Zimbabwe retail sector

by Staff reporter
11 February 2019 | 811 Views
THE retail sector in Zimbabwe is seen declining this year due to high inflation and a widening rift between prices and incomes, the Confederation of Zimbabwe Retailers (CZR) has said.

CZR president Denford Mutashu told NewsDay in an interview that 2019 had started off with high inflation and a widening rift between prices and incomes, which was not good recipe for retail growth.

"Spending power is weakening as consumers' disposable incomes decline, and that will also affect our rate of stock turn as well as sales. Further, forex shortages and attendant high costs of sourcing forex are also likely to impact consistent supply of products. It will also put upward pressure on the cost bases of many retail establishments," he said.

Latest data from the Zimbabwe National Statistics Agency (Zimstat) indicate that the country's year-on-year inflation rate surged to 42,01% in December 2018.

"Again, we start the year with a huge blow; with violent attacks which took place in January, resulting in some retail shops being razed down to the foundation, while others were vandalized and looted, resulting in losses running into millions of dollars," Mutashu said.

"So we have started the year in loss and recovery mode, with some players actually out of business. If we don't get access to facilities to replenish and recapitalise, it might negatively impact growth for this year."




Last month, Zimbabwe witnessed widespread protests against a steep hike in the prices of fuel and general economic decay, which turned violent when security forces used excessive force in a bid to quell the protests.

In 2018, Mutashu said the key highlight was the lack of adequate foreign currency for retail players to meet international obligations. He said some retailers and value-chain players had to resort to the parallel market, where the cost of accessing foreign currency continued to edge up, putting an upward pressure on the general price levels.

"The forex shortages also affected margins and merchandise assortments. There were also cash shortages, particularly in the countryside and it affected transactions. Supply was
fairly stable although shortages were experienced, especially for basic lines," he said.

"We also don't forget the violent attacks that took place in August 2018, resulting in retailers losing millions during shop vandalisations and lootings."

Commenting on the shelf space, Mutashu said local producers were currently facing bottlenecks, mainly caused by foreign currency shortages and the high cost of doing business, resulting in imported products claiming some of the space, aided by the removal of import restrictions.

Inflation Retail Zimbabwe

Source: newsday

Comments

Latest News

'Chief Ndiweni could be poisoned in prison'

by newzimbabwe | 24 August 2019 | 12 Views

Pastor 'expels' congregant for not tithing? - A REVEREND with Church o...

by Staff reporter | 24 August 2019 | 13 Views

Businessman sleeps with own mother to boost wealth - A businessman fro...

by Staff reporter | 24 August 2019 | 6 Views

Afcon renegades blacklisted

by Staff reporter | 24 August 2019 | 3 Views

Tenant locks landlord out of house - A Bulawayo woman regrets offering...

by Staff reporter | 24 August 2019 | 6 Views

Woman miscarries after being kicked over $1,50 - A THREE months pregna...

by Staff reporter | 24 August 2019 | 4 Views

Policeman flees to a toilet for safety - In a dramatic incident a poli...

by Staff reporter | 24 August 2019 | 3 Views

Children accuse mother of witchcraft

by Staff reporter | 24 August 2019 | 16 Views

Woman threatens to kill ex-lover's pregnant wife - There was drama in ...

by Staff reporter | 24 August 2019 | 5 Views

Police crush teachers' demo - POLICE yesterday ruthlessly crushed a de...

by Staff reporter | 24 August 2019 | 11 Views

Illicit brew kills one, 3 hospitalised - One person died at St Alberts...

by Staff reporter | 24 August 2019 | 4 Views

Mnangagwa urges farmers to adopt new technology - President Emmerson M...

by Staff reporter | 24 August 2019 | 5 Views

Mudenda's Gukurahundi remarks ignite storm - A PROPOSAL by Speaker of ...

by Staff reporter | 24 August 2019 | 1 Views

Kazembe Kazembe fights for his party position

by Staff reporter | 24 August 2019 | 1 Views

Chamisa ally to spend weekend in remand prison

by Staff reporter | 24 August 2019 | 4 Views

Man (32) subjects woman (61) to bizarre 'rape ordeal' - A 32-YEAR-OLD ...

by Staff reporter | 24 August 2019 | 13 Views

Zanu-PF Masvingo seeks Zivhu expulsion

by Staff reporter | 24 August 2019 | 1 Views

Technical faults at Hwange cause for prolonged load shedding

by Staff reporter | 24 August 2019 | 6 Views

Econet closes shop in 13 countries - BILLIONAIRE and Zimbabwe's teleco...

by Staff reporter | 24 August 2019 | 4 Views

Kambarami didn't have powers to suspend Town clerk, says High Court

by Staff reporter | 24 August 2019 | 3 Views

Zimbabwe hit by birth control pills shortage - ZIMBABWE is facing a co...

by Staff reporter | 24 August 2019 | 5 Views

BCC disconnects water supplies to defaulting rate payers - BULAWAYO Ci...

by Staff reporter | 24 August 2019 | 1 Views

Zimbabwe under siege once again -  IT'S like deja vu - we have be...

by Editorial - chronicle | 24 August 2019 | 3 Views

Mnangagwa using borehole for votes campaign in Glen View? - Government...

by Staff reporter | 24 August 2019 | 1 Views

Mohadi hails agri-business

by Staff reporter | 24 August 2019 | 1 Views

Mupfumira probe 'complete in 3 months'

by Staff reporter | 24 August 2019 | 4 Views

Entertainment

Top 5 PS2 ISOS to play with friends you can get right now

by Staff Writer | 21 August 2019 | 145 Views

Rebecca Malope retires

by Mandla Ndlovu | 20 August 2019 | 5845 Views

Zimfest delivers another 'phenomenal' festival

by Tidi Kwidini | 07 August 2019 | 640 Views

Should you be betting on reality TV show outcome too?

by Staff Writer | 05 August 2019 | 95 Views

WATCH: Jah Prayzah featuring Iyasa Sadza nemuriwo song

by Mandla Ndlovu | 23 July 2019 | 5732 Views

Muvhango star Marang Phala visits Prophet Sovi's church

by Mandla Ndlovu | 22 July 2019 | 9660 Views

Pure Black set to take Africa by storm

by Mandla Ndlovu | 04 July 2019 | 1004 Views
iBlog

Tb Joshua Worst Enemy Angelique Tonge Exposed

About two years ago, we came out emphatically about those behind the t.b joshua watch. many were those who thought we were framing innocent people up or on a witch hunt. some events have vindicated us and the cat is out of the bag. it is said that no... Read More
pointblank 01 May 2015 ago

Samsung Gear Vr Innovator Edition For S6: The Perfect Vr Intro For Professionals

we're drenched in talk about the impending wave of consumer-facing vr headsets about to hit the market, starting at the end of 2015. by contrast, you can walk into a best buy right now and pick up the samsung gear vr innovator edition for the galax... Read More
Sergey 20 June 2015 ago