Food chains pros­per in Zim

Weekend Argus (Saturday Edition) - - FRONT PAGE - PETA THORNYCROFT

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

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