Festive season goes into overdrive

…Retailers step up preparations

…as experts express views on consumer spending

…consumers divided on expectations

“Traditionally, Zimbabweans are known to be spenders of repute especially during holidays, such as the coming Christmas holiday.

“In line with tradition, we are anticipating more business especially during this period, hence we are sprucing up our place,” said Mr Chaurura Jongwe who runs a popular outdoor joint in Hatfield. Though, he admittedly said the economic situation for the generality of the populace was tough as witnessed by the slump in business during the course of the year, he said over the years business tends to be brisk during this period of the year.

In Harare, outdoor joints such as Kwa Mereki, Zindoga and up market drinking places such as Fiesta and Bootleggaz in Newlands are popular with merrymakers are owners are anticipating bumper business, hence they have gone into overdrive to restock their warehouses.

Mr Jongwe said they have even extended their warehouse and illuminated their joint with exquisite Christmas décor and splendor in view of forecasted positive business prospects.

His sentiments were also echoed by another Mufakose resident Jabson Sekenya, who said although the economic climate was generally tough, he had done well to save the little accrued over the year, so as to enjoy the festivies with his family.

“After all, a Christmas meal costs in the region of around US$10, which in my view is a sustainable amount,” he argued. An average Christmas Zimbabwean dish constitutes bread which costs US$1, margarine US$2 a kg, sugar US$1 a kg, rice (US$1 kg) and chicken (US$5-6), which averages around US$10″. As for the city center, about a fortnight ago Harare City switched on the Christmas lights in the ceremonial home of the Christmas festivity in Harare, the Africa Unity Square, signaling the onset of the festive season.

However, some economic analysts have described this year’s festivities as a non-event, arguing that the consumer purchasing power of the average Zimbabwean worker continues to diminish, despite what they said was a noted stabilization of the macro-economic environment since the post inclusive government era in February 2009.

Market watchers contend that rising consumer indebtness and declining disposable incomes, prompted by a corporate world, which is finding it difficult to remunerate its workforce, might dampen consumer spending expectations this festive season. This also comes on the backdrop of what analysts described as a ‘stunted’ and stagnated monthly income by the majority of workers in the country, which they say remains below the official poverty datum line of US$540, 00.

They argue that what exacerbate the consumer spending pattern this Christmas festival is a worrying trend of price distortions by retailers and a notable negative inclination of year to year consumer basket movement over the years.

Economic analyst Mr Peter Rwafa said the consumer spending pattern has changed over the years due to a myriad of problems which include low levels of cash inflows.

“Retailers are going extra terrestrial in a bid to woo customers, a clear indication of low levels of business transactions due to the compromised liquidity flow,” he said.

The cost of basic commodities for an average family of five has been pegged at around US$ 592, 00 in 2014 by the Consumer Council of Zimbabwe (CCZ).

Consumers bemoan what they claim is the below capacity operations by most local industries which they say has negatively impacted on the local consumer, resulting in the influx of foreign goods on the local market.

“This has created a lot of distortions on the pricing regime, and that coupled with the below poverty datum line salaries, it becomes a concoction for brewing “Christmas carnage”,’ said a Harare worker Mr Brighton Mutanga.

Mr Mutanga said there is nothing worth celebrating about the Christmas except for its religious importance.

“For an average Zimbabwean worker, the once revered and special day of the calendar has been reduced to an ordinary day, with no notable expectations worth anticipating,’ he said.

However, economic analyst Jonas Kamonere defended the retailers arguing that the pricing mechanism in the consumer market was justifiable.

He said Zimbabwean retailers are importing most of the goods on their shelves from mostly South Africa and cannot be expected to be very efficient in their pricing.”The volatility of the South African rand continues to pose exchange rate risks for the retailers considering the extensive use of the greenback,” he said.

“Furthermore, the cost base for Zimbabwe retailers vis a vis South African retailers is so high and very sticky downwards and therefore the general feeling that consumers are being fleeced is largely misplaced.”Mr Kamonere said most of the imported goods attract costs related to freight, insurance, finance, customs duty and to compare shelf prices in South Africa and Zimbabwe and conclude that prices in Zimbabwe are expensive is illogical. He said instead, the employers should instead come up with ways to incentivize their workforce especially cushioning them against a rising cost of living not only on important yearend holidays such as Christmas, but always.

However, prospects of the future of the economy of the country are forecasted to improve but analysts say this is hinged on the successful implementation of the economic blueprint ZimAsset.