admin
THE Confederation of Zimbabwe Retailers (CZR) will have its annual congress early next month at a time the sector is battling capacity utilisation, cash constraints and fierce competition from informal businesses.
Retailers are desperate to improve capacity utilisation, competitiveness, minimise overheads and deal with supplier constraints.
CZR consultant Mr McDonald Gurura said, “This sector has been there for long (sic), contributing to the economy. Retailers pay taxes, but recently, there has been too much competition from vendors who do not pay taxes at all.
“We have nothing against vendors, but let them use designated areas for their business, not on doorsteps of retail shops. All these issues need to be addressed and we are hoping all stakeholders will be available to deliberate,” said Mr Gurura.
Since introduction of the multiple currency regime in 2009, the sector has borne the brunt of unfair competition from cheap imports.
And while brick-and-mortar institutions pay overheads such as salaries, license fees, utility charges and taxes to the Zimbabwe Revenue Authority, informal businesses face no such hurdles.
In its recent financials, listed retailer OK Zimbabwe said vending presented a significant challenge.
Mr Gurura added that it was important to make local goods more attractive than imports.
“We are working with Buy Zimbabwe to ensure that local goods are branded to customer satisfaction. The market decides which products to give shelf space, not retailers,” he said.
Imports take up more than 60 percent of shelf space in local retail shops.
CZR is presently researching the amount of money circulating in the retail sector.
Online Reporter