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NewsDay

AMH is an independent media house free from political ties or outside influence. We have four newspapers: The Zimbabwe Independent, a business weekly published every Friday, The Standard, a weekly published every Sunday, and Southern and NewsDay, our daily newspapers. Each has an online edition.

Govt urged to do more to spur growth in retail sector

Business
BUY Zimbabwe says retailing contributes nearly 10% to the economy and more must be done to spur growth in that sector.

BUY Zimbabwe says retailing contributes nearly 10% to the economy and more must be done to spur growth in that sector.

BY TATIRA ZWINOIRA

In efforts to get stakeholders and suppliers working together, Buy Zimbabwe is hosting a retailers’ supply chain conference tomorrow aimed at steering economic growth in that sector.

A customer shopping inside Borrowdale TM

Speaking to NewsDay yesterday, Buy Zimbabwe chief economist, Kipson Gundani said the economy is evidently facing the wrong direction, considering a deceleration of growth from over 8% in 2009 to 2010 to an insignificant forecast of 1% in 2015.

“This suggests that the wheels of economic activity are evidently slowing down. The major challenges affecting the economy remain unchanged, suggesting that little has been done to address such issues or the economy has approached a rock in terms of responding to domestic stimulation and would require external shocks to cause notable changes,” he said.

“This conference is aimed at bringing together key stakeholders in the whole retail value chain, to table and tackle challenges being faced by both retailers and their suppliers in unlocking the trapped capacity for growth through local preference.”

The conference comes on the back of low aggregate demand caused by low disposable income, as the economy takes a battering.

The conference will also assist retailers understand their target market.

Gundani said it is critical for retail chains to fully understand the trends in sourcing and their implications on the retail supply chain. He said retail chains needed to keep redefining the supply chain through supplier development initiatives and how the retail supply chain is being shaped by the increasing use of mobile platforms and how to respond to the millennial customers’ expectations.

“These are the matters that are shaping both retailing and its feeder sectors [the industry], and will be increasingly become determinant factors in the medium to long term,” he said.

“As supply chains become more global, the pace of demand changes is increasing and product life cycle dwindling.

The responsiveness of a company’s supply and fulfilment networks are becoming more significant determinants of company success.”