2 more retailers go under corporate rescue, as economic crisis sinks teeth

Two more retailers, Food World and Trade Centre, part of the same group, have gone into corporate rescue:

The Company says: “This has primarily been necessitated by exchange rate volatility and competition from unlicensed retailers who are under-cutting prices.”

Last year, Food World closed its Eastgate Market branch, the latest in a string of its outlets to shut down.

OK Zimbabwe, the country’s largest retailer by store count, is navigating increasingly turbulent waters as it announces the closure of five branches across the nation.

The 83-year-old retail giant cited a challenging trading environment as the primary reason for the shutdowns, but critics argue that deeper structural and managerial issues are at play.

The affected branches include Robson Manyika, Glen Norah, Kuwadzana Express, and Mbare in Harare, as well as Chitungwiza Town Centre and Entumbane in Bulawayo.

A sixth branch is slated to close in March 2025. The closures will result in significant job losses, with hundreds of employees set to be retrenched.

The company has offered a severance package of one month’s salary for every year served, three months’ notice pay, and payment of outstanding leave balances, though it remains unclear whether workers have accepted the terms.

Zwnews