Formal Retailers Lament The Influx Of Cheap Substitute Goods

The country’s formal retail sector has lamented the damage posed by the informal sector which is selling cheap substitute goods to consumers resulting in the formal sector making loses, Sunday Mail reports.

This was revealed by CRZ President Denford Mutashu who said groceries smuggled into the country are sold at a very low price, formal retailers can’t match that price:

Introducing the Pindula News Mobil App
Download from Google Play Store

Formal traders are currently in a difficult situation as they have to contend with informal traders, who are selling commodities available in shops at very low prices and this practice has seen anyone wishing or thinking of being an informal trader just “waking up” to become one,

The (profit) margins for the sector have dropped. We used to put a margin of 10-15 percent, but have reduced to five percent and sales per square footage have also dropped. The average basket per shop has also reduced as the commodities are being offered outside.

Expenses remain constant as shops can’t lay off workers overnight with equipment having to be maintained despite sales being low. Salaries have to be paid despite prices going down

More: The Sunday Mail



Join WhatsApp & Telegram News Groups:

WhatsApp Group:

Telegram Group:

Back to top

Write a Comment

Your email address will not be published.

Share Full Post

Nyaradzo logo

RSS Recent Profiles Created

Satisfaction survey
How likely is it that you would recommend Pindula News to a friend or colleague?
SuggestionsHow can we improve?
You have already submitted your feedback. If you would like to add more feedback please write us on