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Kiyapili Sibanda, Business Reporter
RETAILERS who increase prices are digging their own graves and risk losing business in the long term, the Confederation of Zimbabwe Retailers (CZR) has warned.
Responding to consumer concerns over the increase of some basic commodity prices, CZR president Mr Denford Mutashu said businesses have no justification for increasing prices in a dollarised economy.
He said unwarranted price increases would disrupt economic progress at a time when the country is working on enhancing the ease of doing business and enhancing competitiveness.
“Retailers who are increasing prices surely are digging their own graves because we are engaging with manufacturers to try and stop this mischief,” said Mr Mutashu.
He admitted that some unscrupulous retailers were now implementing a three-tier pricing system, which he said was illegal and a punishable offence.
“In urban areas that’s where we hear of price increases but in rural and periphery areas the prices remained stable,” he said.
Mr Mutashu said retailers were a conduit between consumers and manufacturers hence the need to consult before increasing prices. Surveys have already shown that Zimbabwe is a high cost country hence the dominance of cheap imports on the market.
“Retailers do not increase prices, they are just a conduit and act on how manufacturers peg against supply and demand,” he said.
The latest Consumer Council of Zimbabwe survey has already shown that the cost of living for an urban low-income earner for a family of six has increased by $4.72 or 3.68 percent from $128.34 by end-November 2016 to $133.06 by end of December.
“The price of detergents decreased by $0.76 or 6.51 percent from $11.67 to $10.91.
Increases were recorded in products that include flour by $0.02 from $1.85 to $1.87, meat by $0.59 from $3.98 to $4.57, cooking oil by $0.10 from $1.39 to $1.49, and mealie-meal by $0.70 from $11.25 to 11.95,” CCZ reported.
There are also reports that some retailers and individual businesses are charging extra for payments made in bond notes or bank cards and less for US dollar transactions.
Last week Finance and Economic Development Minister Patrick Chinamasa acknowledged the concern and warned those implicated. He reiterated that bond notes were interchangeable at a rate of 1:1 with the US dollar. The minister said those found guilty will be prosecuted.
Mr Mutashu said his organisation was there to protect the interests of consumers and was determined to expose unfair trading practices.
He said the CZR supported the Reserve Bank of Zimbabwe (RBZ) to promote the use of plastic money in the country.
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