
Harare, Zimbabwe – Formal retail outlets in Harare are increasingly resembling abandoned ruins, serving as a stark indicator of the country’s worsening economic situation.
Retailers across Zimbabwe have been severely impacted by ongoing economic shocks, forcing many to scale down their operations or shut down entirely.
A snap survey conducted by NewZimbabwe.com in Harare on Monday revealed a troubling trend, with numerous retail outlets now operating as hollow shells of their former selves. N. Richards Wholesale, once a bustling hub of activity, is now functioning at a fraction of its capacity. A visit to one of its busiest branches in Tynwald showed empty shelves and signs of an impending closure.
A worker at the store, who spoke to NewZimbabwe.com on condition of anonymity, confirmed that the Tynwald branch is set to close this Friday. “Some goods have been put on sale to clear stock,” the employee revealed, highlighting the dire state of the business.
Similarly, OK Zimbabwe, one of the country’s largest retail chains, has been hit hard. Essential items such as cooking oil and sugar have inexplicably vanished from shelves in several Harare suburbs, leaving residents frustrated and concerned.
Charles Kautare, a resident of Kuwadzana, described the situation as “zungu rakapinda nyoka” (a nest invaded by snakes), painting a grim picture of the once-thriving retail sector. “This means our economy is in bad shape. These supermarkets appear to be winding down their operations. Since Independence, we have known these stores. If the economic issues are not addressed, we could return to the 2008 crisis,” Kautare warned.
Zimbabwe’s economy is currently navigating a turbulent period, largely due to the poor performance of the local currency. The Zimbabwe Gold (ZiG), introduced last year as the country’s sixth attempt to stabilize the economy, has underperformed significantly. Within less than a year, the ZiG is already trading at 40 to 1 US dollar on the black market, further eroding public confidence.
Economic analyst Gift Mugano attributed the downsizing of retail outlets to deeper structural issues rooted in poor political governance. “This reflects the dire situation we are in as a country. It shows that the current government has failed to drive the economy. There is a legitimate crisis,” Mugano stated.
He emphasized that a currency can only be stable if there is public trust in the government. “Without confidence in the government, no one will trust or use the currency,” Mugano added.
The challenges facing the retail sector are not new. In November last year, Choppies, another major retail chain, announced its exit from Zimbabwe, citing unfavorable exchange rate policies that have driven customers toward the informal market.
Zimbabweans are increasingly turning to tuckshops, which are thriving at the expense of formal retail outlets. These informal traders often offer goods at lower prices, as they operate outside the regulatory frameworks that formal businesses must adhere to, such as taxes, licensing fees, and labor laws.
In a recent statement, the Confederation of Zimbabwe Retailers (CZR) called on President Emmerson Mnangagwa to intervene and save the formal retail sector. “The fiscal, monetary, regulatory, and statutory frameworks have remained unforgiving to formal retail and wholesale operators. These challenges have created an uneven playing field, allowing the informal sector to dominate with little intervention to ensure equity,” the CZR stated.
The organization warned that the growing informalization of the economy has led to a significant loss of market share for formal businesses. “CZR, therefore, calls for urgent intervention from His Excellency, President Dr. Emmerson Dambudzo Mnangagwa, to rescue what remains of the formalized retail and wholesale sector,” the statement concluded.
As Zimbabwe’s economic woes deepen, the decline of its formal retail sector underscores the urgent need for comprehensive reforms to restore stability and confidence in the economy. Without decisive action, the country risks further deterioration, with dire consequences for businesses and citizens alike.