By Business Reporter-Food Lover’s Market has announced the closure of its Borrowdale and Avondale outlets in Harare, citing operational challenges linked to the Zimbabwe Gold (ZiG) currency, which continues to strain the formal retail sector.
The two premium branches—acquired by OK Zimbabwe in 2023 along with the now-defunct Bulawayo store—will officially cease trading in June 2025. The Food Lover’s Market outlet in Greendale will remain open under a separate franchise arrangement.
The closures were confirmed by the company via social media posts on Tuesday:
“Your local favourite daily fresh stop is saying goodbye. We want to let you know that Food Lover’s Market Borrowdale will be closing shop on June 8, 2025. Until then, look out for daily, wonderful specials in-store as our thanks to you for your generous support.”
“To our beloved Avondale community, a heartfelt thank you for your loyalty over the years. Food Lover’s Market Avondale will be wrapping up trading on June 22, 2025. As we prepare to finalise trading, as a mark of our gratitude, we have daily exciting specials in-store for you, designed to serve you fresh value.”
Formal Retail Under Siege
The closures mark the latest blow to Zimbabwe’s formal retail sector, which is struggling to remain viable under a hostile economic climate worsened by the mandatory use of ZiG.
Although Zimbabwe officially operates a multi-currency system, the government requires retailers to accept ZiG at a fixed exchange rate alongside the US dollar. However, the official rate often diverges widely from the black-market rate, resulting in significant losses for formal businesses.
OK Zimbabwe has shut down several of its outlets in recent months, including stores in Harare’s low-density suburbs and central business district. The financial strain recently forced the company to recall its retired general manager in a desperate attempt to stabilise operations and manage growing losses.
Widespread Retail Closures
OK Zimbabwe is not alone in facing mounting pressure. N. Richards Group—formerly one of the country’s largest wholesalers and retailers—has also closed multiple outlets nationwide, particularly in small towns and farming communities, due to rising operational costs and falling profit margins.
Other major players such as Spar and Pick n Pay have scaled back operations significantly, while Botswana-owned Choppies completely exited the Zimbabwean market in 2023, citing an unsustainable business environment.
Informal Traders Fill the Gap
As formal supermarkets collapse, the informal retail sector has rapidly expanded. Small-scale vendors, street traders, and tuckshop operators now dominate much of the consumer landscape. These traders deal mostly in US dollars, avoid fixed pricing laws, and operate with lower overheads—giving them a major competitive edge over formal outlets.
Their resilience, coupled with the ability to source goods through informal networks, has allowed them to undercut established retailers and absorb a growing share of the market.
Bleak Outlook
Industry observers warn that unless there is a significant shift in monetary and economic policy, particularly around currency regulation and exchange rates, the formal retail sector will continue to shrink.