Most retailers in fast moving consumer goods segment temporarily closed shops on Tuesday in a move that is meant to allow them time to assess the dynamics and developments around currency and inflation.
The recess is also a loss curtailing measure through the preservation of stocks which may have to restocked at higher prices if caution is not taken.
Most retailers have highlighted several varying reasons for the temporary closure carefully wording their public notice in a way that does not cause further speculation and price gains.
In a notice to customers KFC Zimbabwe said it will be closed until further notice citing inability to secure supplies from suppliers demanding forex payments.
Jet and Edgars stores were closed countrywide with the company sparingly notifying customers that a training session was ongoing.
Quick service restaurant operators closed in number with upmarket restaurant St Elmos advising customers that it will be closed from tomorrow until further notice. “Unfortunately we are unable to source stock unless we pay suppliers in US $ cash. We will take this time to do a deep clean and some running repairs” reads part of the statement.
Dusk Home Sales which retails furniture, Corky’s Pub n Grill among others posted similar notices advising of the temporary closure.
In another statement the British Airways said it is suspended temporarily the full ticketing authority in Zimbabwe citing ongoing difficulties in forex repatriation.
This cross section highlights the gravitating economic situation in Harare, fuelled by forex shortages and rampant inflation. These are the clearest signs of rejection of local money by the citizens.
The crux of the matter however remains that re-dollarising entails wiping off RTGS balances as the removal of bond notes alone will only worsen the crisis. Despite calls for calm it is not expected that government will come up with lasting solutions in the very short term.
- Equity Axis News
