Late salaries spoil festive season

Kudzanai Gerede and Ngoni Dapira
LATE bonuses and salaries for both private sector employees and civil servants has dampened festive season shopping in Mutare.

A snap survey by The Manica Post on Tuesday showed that the majority of retail and clothing outlets were feeling the pinch of low business this festive season.

In boutiques and major clothing retail outlets in Mutare like Edgars, Topics and Meikles it showed that business was low compared to last year when civil servants received bonuses and salaries on time.

A worker from one of the major clothing outlets who requested anonymity confirmed that they were feeling the pinch.

“I can confirm that business is low this year compared to last year. I think it is mostly because our major clients who are account holders are civil servants and some of them have not yet been paid their December salaries and do not have disposable income. We can really feel the pinch this year in terms of low sales,” said the worker.

Although there was little activity with few shoppers trickling in clothing shops intermittently, the festive gloom could be seen on several people’s faces on the streets that were doing window shopping.

Another shop operator in one of the clothing outlets who also requested anonymity said without bonuses people were spending wisely with school fees and the dreaded ‘January disease’ in mind.

“Bonuses have always cushioned people during the festive season, so without bonuses in both the public and private sector, festive shopping is obviously expected to be on the decline. This time it has just been made worse because civil servants have also been affected in the upshot,” he said.

Even cross border traders that sale in car boots and at flea markets could feel the pinch as there was little activity at the flea markets uptown and downtown.

Government extended the pay date of teachers and police officers to next week Monday, an outcome which has forced many not to travel this festive season.

A teacher, Mr Tapiwa Mapuranga, said he was forced to take a loan from a friend that he would return at a 15 percent interest rate just to stay afloat this month until the pay date.

“We really wish there could be timely notices in June or even two months earlier so that people prepare for the worst. I am a family man with three children and I could not disappoint them and spoil their Christmas so decided to take a loan instead. But who will tax Government for late payment? This is not fair,” said Mr Mapuranga who was evidently bitter.

While some in the private sector have already adjusted to disappointments of not receiving bonuses, most complained that the biggest challenge remained that of late salaries.

“I fail to plan sometimes because of the problem of late salaries. Some of us in the private sector have since adjusted on the bonus because I last received a bonus in 2010. But if I get a half salary or late salary after making plans you can imagine the disaster,” said Mr Paida Chezani, who refused to state the company he works for. The retail sector has also not been spared by the generally low product uptake from the cash strapped consuming public this festive season.

A survey in the Central Business District showed that there was a serene business environment where short queues characterised most of the retail outlets with customers evidently showing laxity in buying products from the major supermarkets. Some of the retail operators interviewed, however, said the increase in retail outlets which sprouted in the CBD during the course of the year, like Choppies and OK Mart, could also be another reason to explain the short queues.

Spar merchandising manager Mr Tichaona Dongo said business during the festive period was not lucrative as compared to the previous year due to the liquidity constraints in the country of, which the retail sector was no exception.

A sales manager in one of the retail chains also revealed that there was a notable decline in business. “There is no money, people are struggling and cannot afford spending big as previously done during the festive season. Our sales are so low as compared to last year although we can say we have tried to somewhat maintain our customer base intact. We are currently getting around 3 000 customers a day from data in our customer accounts, which is a sharp decline from around 5 000 customers during the same period last year,” said the manager.

However, newly opened retail outlet, Pick n Pay branch manager Mr Artmos Maphosa said as a new baby recently re-branded, business was stable.

“We are witnessing good business and we cannot tell whether it is the excitement of our new shop that is pulling customers or it is the festive period. As of yesterday (Monday) we started witnessing a change in rising volumes of our customers. We have been receiving not less than 5 000 customers a day, with some days recording 8 000 to 9 000 a day,” said Mr Maphosa.

This year’s festive season comes at a time when the country is experiencing economic challenges which have since forced the public to live within their means. This has been more evident in the liquor retail sector as a survey also showed a dull night life with low uptake in drinking at nightclubs.