Food chains prosper in Zim
ZIMBABWE’S main supermarket chains have done surprisingly well in the last year despite the fragility of the economy and a chronic shortage of cash. South Africa’s Pick n Pay is a major shareholder in the Zimbabwe TM chain, the second-largest group of supermarkets in the country, and has 16 stores of its own.
While many complain that the cost of South African-made goods in Zimbabwe is sometimes up to twice the price they are at home, consumers somehow seem to have found ways of upping their spend in the TM chain, OK Bazaars and the Botswana-based Choppies group, which has 30 stores.
OK Zimbabwe, the largest grocery chain, with 63 outlets, reported a massive increase of more than 800% in profits to more then R85 million, with revenue growing by 8% by the end of March.
Pick n Pay says its Zimbabwe associates TM Supermarkets, with 56 stores countrywide, saw earnings grow 74.7% to R80.2m in the full year to February 26.
While supermarkets have done well in the last year, the non-food sector has not, because of low incomes, a shortage of cash and high unemployment. – Independent Foreign Service