Retail Giant N Richards Shuts Two Harare Outlets  – Eduzim News

By Business Reporter- One of the country’s largest retailers, N Richards, has closed its Hatcliffe and Tynwald outlets, signalling deeper cracks in the formal retail sector as businesses buckle under economic strain.

The closures come on the heels of widespread challenges facing formal retailers. 

Major chains, including OK Zimbabwe, are reportedly facing difficulties in restocking due to the ZIG crisis.

The Confederation of Zimbabwe Retailers (CZR) has also sounded the alarm on the viability of formal retail shops.

The country’s formal retail sector has struggled to compete with the unregulated informal market, which dominates by avoiding taxes, licensing fees, and compliance with labour laws. 

CZR attributes the closures to the dual currency system, forcing retailers to accept ZWL while operating in a dollarized supply chain.

The economic turbulence has not spared big names:

• Spar Zimbabwe recently shuttered its Queensdale branch.
• Choppies Zimbabwe exited the market altogether.
• Mahommed Mussa reduced its shop space by 60%.

In a statement, CZR expressed grave concern over the closures, highlighting the severe consequences of an unforgiving economic environment:

“The continued closure of formal retail and wholesale businesses underscores the crisis. The fiscal, monetary, regulatory, and statutory frameworks have created an uneven playing field. While formal businesses crumble, the informal sector thrives unchecked, eroding market share.”

CZR has called on President Emmerson Mnangagwa to address these challenges and stabilize the sector urgently.

The closures evoke memories of the 2008 hyperinflation crisis when businesses shut down en masse due to the collapse of the Zimbabwean dollar. 

With skyrocketing operational costs and dwindling consumer purchasing power, Zimbabwe risks repeating history if urgent measures are not taken to protect the formal economy.

N Richards’ decision to close two outlets adds to a growing list of casualties in the country’s retail sector, reflecting the worsening state of the economy and raising questions about the future of formal businesses in the country.

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