Retailers battle for survival

RETAILERS in Zimbabwe say they are fighting for survival in the face of rising competition from informal traders who tend to charge lower prices because they are not subject to regulatory requirements.
This comes as Metro Peech & Browne (Metro Peech), one of the country’s largest wholesalers, has gone into corporate rescue after falling insolvent.
According to Crowe Advisory (Private) Limited, the appointed administrator, the wholesaler incurred negative cashflows due to the pressure from the informal sector and other factors such as undercapitalisation.
“Informal sector traders generally do not comply with the payment of tax in comparison with established businesses such as Metro Peech,” Crowe said in its report to the Master of the High Court.
This also comes amid concerns that “distortions” in Zimbabwe’s foreign exchange management system have hurt formal retailers and wholesalers.
In a statement this week, OK Zimbabwe, one of the country’s largest retail chain operators, said government policy intervention was necessary to level the playing field.