• Truworths Delisted: The Zimbabwe Stock Exchange (ZSE) officially delisted Truworths on July 22, 2025 since 1981
• Corporate Rescue: The decision followed a voluntary resolution by Truworths’ Board to enter corporate rescue amid overwhelming challenges in the retail sector
• Retail Sector Struggles: Truworths' exit shows systemic issues facing Zimbabwe's retail industry, including competition from the informal sector

Harare- The Zimbabwe Stock Exchange Limited (ZSE) has officially terminated the listing of Truworths effective 22 July 2025, following a series of developments that reflect the challenging operating environment for large-scale retailers in Zimbabwe after 44 years of listing since 1981.

The decision to delist was initiated by Truworths’ Board of Directors, who voluntarily placed the company under corporate rescue.

“On 20 February 2025, Truworths’ shareholders convened and passed a resolution for the voluntary termination of the company’s listing on the ZSE, in accordance with Section 11 of the ZSE Listing Requirements,” read the circular.

“The ZSE complied with Section 64 (1) (a)(i) of the Securities and Exchange Act [Cap24.25] by obtaining approval from the Securities and Exchange Commission of Zimbabwe (SECZim) to remove Truworths from its official list.

“As a result, under Section 15 (d) of the ZSE Listing Requirements, Truworths’ securities can no longer be traded on the ZSE as of 22 July 2025.”

 This delisting marks a significant moment for Zimbabwe’s retail sector, which is grappling with systemic challenges that have also affected other large-scale retailers, such as OK Zimbabwe, and highlights the broader economic and policy issues impacting formal retail operations.

Truworths’ struggles are emblematic of the difficulties faced by large-scale retailers in Zimbabwe, driven by a combination of internal financial pressures and external economic challenges.

The company has been burdened by high debt levels, largely due to excessive inventory that has failed to compete with the informal sector.

Zimbabwe’s retail market is highly price-sensitive, and Truworths has struggled to match the affordability and fashion-forward offerings of informal traders.

Unlike formal retailers, informal vendors operate with lean structures, evading taxes and avoiding rental costs, which allows them to offer cheaper, trendier clothing sourced from countries like Zambia, South Africa, Mozambique, the UAE, and China.

These imported goods benefit from stable currencies and government subsidies in their countries of origin, enabling lower production costs and competitive pricing.

Truworths’ inability to keep pace with these dynamics has led to its exit from the ZSE, but it is not alone in its struggles.

OK Zimbabwe, the country’s largest retail chain by store count, has also faced significant challenges, recently announcing plans to sell seven properties, including four stores, to raise USD 10.4 million to settle supplier debts and restock inventory.

In contrast, some retailers, such as Edgars Stores, have shown resilience by adapting to the local market’s demands. Edgars has capitalised on its Jet stores’ ability to stay current with fashion trends, despite charging higher prices than informal traders.

To address price sensitivity, Edgars introduced its Express Chain stores, which offer products starting at just one dollar, balancing quality with affordability to compete with the informal sector. Following a successful 2024, where Edgars opened nine new Express Chain stores and reported topline growth and a marginal uptick in sales volumes for the first half of the year, the company plans to launch seven additional stores in 2025.

This strategic expansion demonstrates how some retailers are navigating the challenging environment by blending affordability with quality, a model that Truworths failed to adopt effectively.

However, even for adaptable players like Edgars, the broader operating environment remains fraught with difficulties that are not entirely within their control.

The decline of Zimbabwe’s formal retail sector cannot be attributed solely to individual company missteps, as government policies have significantly exacerbated the challenges.

A key issue is the government’s failure to align taxation with economic realities, placing undue pressure on formal retailers. The informal sector, which dominates much of the retail market, largely evades taxation and operates without the overhead costs that burden formal businesses, such as rent and compliance expenses.

Additionally, the government has been slow to address the influx of cheap, substandard imported goods ranging from groceries to clothing that flood the market from neighbouring countries and beyond. These imports, often dubbed “dumping,” benefit from lower production costs and stable currencies, making it nearly impossible for local retailers to compete.

In the FY2025 budget statement, Finance Minister Mthuli Ncube introduced regulations aimed at bringing the informal sector under the tax net, but these measures have yet to yield significant results.

Shops continue to close, and cheap goods still dominate the streets, signalling that the government’s interventions have not been effective enough to level the playing field.

Another critical factor undermining formal retailers is the government’s pegged exchange rate system, which has disproportionately impacted the sector. Formal retailers are required to price goods in the local currency, Zimbabwe Gold (ZiG), at an overvalued rate, often 30% higher than the market-based exchange rate while the informal sector operates almost exclusively in US dollars.

This currency conundrum forces formal retailers to adjust their ZiG prices to reflect the true cost of goods, making their products significantly more expensive than those in the informal market.

The local currency’s volatility, compounded by inflationary pressures and policy missteps, further erodes the competitiveness of formal retailers.

This issue began to manifest prominently in 2023, with shop closures accelerating in 2024 and continuing into 2025, as seen with Truworths and OK Zimbabwe’s struggles.

The overvalued exchange rate, combined with the informal sector’s ability to operate outside regulatory constraints, has created a pricing disadvantage that has driven many large-scale retailers out of business or into desperate measures like asset sales.

Regionally, large-scale retailers in Southern Africa face similar challenges, though Zimbabwe’s situation is particularly acute due to its economic instability. In countries like South Africa, retailers like Shoprite and Pick n Pay have also contended with price-sensitive consumers and competition from informal markets, but they benefit from more stable currencies and better-regulated trade environments.

 To survive, these retailers have invested heavily in supply chain efficiencies, private-label brands, and digital platforms to reach cost-conscious consumers.

In contrast, Zimbabwe’s retailers face additional hurdles, including hyperinflation, currency depreciation, and inconsistent policy enforcement.

Edgars’ success with its Express Chain stores illustrates how innovation and adaptability can mitigate some of these challenges, but for many retailers, the combination of high debt, uncompetitive pricing, and an unfavourable operating environment has proven insurmountable.

Truworths’ delisting from the ZSE is a reminder of these systemic issues, which require both corporate resilience and meaningful government reforms to address effectively.

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