Almot Maqolo, Staff Writer 
CLOTHING retailer Truworths expects sales to increase after the introduction of US dollar credit at the beginning of the second quarter this year.
Zimbabwe has been fast dollarising, with statistics from the Zimbabwe Statistics Agency revealing that 78 percent of transactions for food and goods purchases are now being done in foreign currency, while 70 percent of the government’s domestic expenditure is in US dollars.
“With the economy dollarising, the business introduced US dollar credit with effect from April 1, 2023. This should see an improvement in sales and, together with the recapitalisation proposal, the balance sheet should strengthen and sustain the underwriting of US dollar credit,” Truworths said in its half year results for the half year ended January 8, 2023. The clothing retailer said challenges arising from exchange rate volatility continue to be a threat to business.
Truworths’ revenue declined by 43 percent to $577,80 million, while gross profit fell by 32 percent to $432,06 million.
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.
