The Confederation of Zimbabwe Retailers (CZR) has raised the alarm over the deteriorating state of Zimbabwe’s formal retail and wholesale sector, highlighting its vulnerability amidst a turbulent economic environment. The recent closure of major retail outlets, including Choppies Zimbabwe and Spar Zimbabwe’s Queensdale branch, underscores the challenges faced by formal businesses. Other prominent players, such as Mahommed Mussa, have scaled back operations significantly, further emphasizing the sector’s dire situation.
CZR President Denford Mutashu has pointed to a combination of economic instability and unfair competition from the informal sector as key contributors to this crisis. Informal traders, who operate outside statutory compliance, offer goods at significantly lower prices, creating a near-impossible environment for formal retailers to compete.
“The informal sector operates outside compliance with statutory obligations, offering goods at lower prices and making it increasingly difficult for formal businesses to compete,” Mutashu said.
The exit of Choppies Zimbabwe—a regional retail giant—serves as a stark reminder of the deepening crisis. Choppies, which once boasted an extensive presence in the country, has exited the Zimbabwean market due to unsustainable operating conditions, leaving thousands without jobs and communities without access to its services. Similarly, Spar Zimbabwe’s Queensdale branch closure has left gaps in essential services, illustrating the broader impact of these shutdowns on livelihoods and economic activity.
Calls for Government Intervention
CZR has called on President Emmerson Mnangagwa to intervene and protect the livelihoods of millions who depend on the retail sector. In a statement, Mutashu emphasized the urgency of addressing the challenges facing formal businesses, which form the backbone of the country’s economy.
“The situation is dire, and urgent action is needed to protect the livelihoods of millions of Zimbabweans who depend on these businesses,” Mutashu said.
CZR has proposed several measures to stabilize the sector, including:
• Formalizing the informal sector: Bringing informal traders under regulatory frameworks to create fair competition.
• Reducing regulatory burdens: Simplifying compliance for formal businesses to lower operating costs.
• Providing direct support: Offering financial assistance and incentives to formal retailers and wholesalers.
• Leveling the playing field: Ensuring informal traders adhere to statutory obligations, such as taxes and labor laws, to create fair competition.
Broader Implications
The collapse of key retail players not only affects employment but also disrupts supply chains and diminishes consumer access to goods and services. With formal businesses struggling to survive, the informal sector has flourished unchecked, creating a dual economy that undermines national development goals.
Economic experts warn that without urgent reforms, Zimbabwe risks losing the formal retail and wholesale sector altogether, further eroding its tax base and exacerbating unemployment. The CZR’s proposals, if implemented, could provide a lifeline to a sector on the brink of collapse.
As the crisis deepens, all eyes are on the government to take decisive action and restore stability to Zimbabwe’s retail landscape. For now, the exit of Choppies Zimbabwe remains a sobering symbol of the challenges ahead.
