By Business Reporter—The collapse of Zimbabwe’s formal retail sector has taken a devastating turn as Food World, one of the country’s largest supermarket chains, announced the closure of two major branches in Harare due to unsustainable operating costs driven by the crumbling local currency, the ZiG.

Major supermarket chains, including OK Zimbabwe, Pick n Pay, SPAR, and Edgars, are now warning of potential shutdowns as the Zimbabwe Intermediated Government (ZiG) currency crisis pushes the retail sector to the edge of catastrophe.

Food World recently shuttered its Eastgate branch following the closure of its Angwa/Jason Moyo outlet, sending shockwaves across the sector.

The Retailers Association of Zimbabwe (RAZ) has issued a dire warning, calling for urgent government intervention to prevent the total collapse of formal retail businesses, which collectively employ close to 20,000 people.
“The government’s reliance on the overvalued official exchange rate is pushing businesses to the brink of extinction,” RAZ declared, citing that regulated stores are struggling to compete with informal traders using black market exchange rates.

In a letter to authorities, RAZ urgently proposed two measures to stave off further closures: allowing real-time exchange rates for pricing and offering targeted discounts to keep costs competitive in USD terms.

Without swift action, the closure of major brands could devastate the economy, wiping out thousands of jobs and millions in tax revenue from entities like ZIMRA.

Retailers are also calling for the Financial Intelligence Unit (FIU) to shift from a punitive stance to a collaborative one, sharing data to better inform economic policies.

With consumer costs spiraling out of control and more closures imminent, the ZiG crisis threatens to send Zimbabwe’s retail industry into freefall.