RETAIL

Zimbabwe’s struggling formal retail sector sees more branch closures

By our African Marketing Confederation News Team | 2025

OK Zimbabwe, a household name in local retail, closes branches as Confederation of Zimbabwe Retailers calls for urgent interventions.

The difficulties in Zimbabwe’s formal retail sector continue, with long-standing local retail chain OK Zimbabwe recently announcing the closure of five branches.

Photo: OK Zimbabwe via Facebook

Among the other retail groups that have struggled in recent times are Spar and Choppies, as well as wholesalers such as N Richards Group and Mahommed Mussa Wholesalers. 

 

Reports from various Zimbabwean media outlets say the branches that have closed are Robson Manyika, Glen Norah, Kuwadzana Express, and Mbare (all located in Harare), plus the Chitungwiza Town Centre branch. 

 

According to the website Zimpricecheck, a sixth branch is also scheduled to be closed in March. 

 

“These are significant closures for a company that has long been a cornerstone of Zimbabwean retail,” the website comments. 

 

“The problems facing OK Zimbabwe are not isolated. The company is facing considerable headwinds, with other retailers finding the trading environment just as difficult.  

 

“The closure of these five branches, which had been struggling, are a symptom of a much deeper malaise. A combination of monetary policy, rising overhead costs, changing supply chains, and competition from the informal sector has created a perfect storm for formal retailers.” 

 

Confederation of Zimbabwe Retailers expresses its concern 

 

The Confederation of Zimbabwe Retailers is already on record as saying that the struggles in the sector are “worrying”. 

 

It has called for “urgent and strategic interventions to abate a gradual demise of the formal retail sector to protect jobs and ensure a stable economic environment,” Business Weekly (Zimbabwe) reported last Friday, 7 February 2025. 

 

Zimpricecheck says informal retailers provide the biggest challenge. “These traders often deal primarily in USD cash, and this allows them to offer lower prices. They do not deal with the banking system, where online payment options are expensive for customers, due to government-imposed taxes like the [IMTT] tax.  

 

“Informal retailers can also dodge the burden of fiscalisation and taxes, allowing them to be far more competitive. In many instances customers are happy to accept this.” 

 

The Intermediated Money Transfer Tax (IMTT) tax chargeable on financial transactions which happen through transfers.

View all articles »
author avatar
Rozanne
See Full Bio
0
    Your Cart
    Your cart is emptyReturn to Shop
    Continue Shopping

    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.