By Business Reporter-Retail giant OK Zimbabwe has announced the closure of its premium Food Lover’s Market outlets in Borrowdale and Avondale, Harare, as operational challenges linked to the Zimbabwe Gold (ZiG) currency continue to strain the formal retail sector.
The two branches, which were acquired by OK Zimbabwe in 2023 along with the now-defunct Bulawayo outlet, will officially cease operations in June 2025.
The Greendale Food Lover’s Market store will remain operational under a separate franchise arrangement.
In social media posts shared on Tuesday, Food Lover’s Market Zimbabwe confirmed the closures:
“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 Lovers 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.”
The closures mark the latest in a wave of shutdowns that have swept across Zimbabwe’s formal retail sector, as supermarkets struggle to remain viable under an increasingly hostile economic environment dominated by the mandatory use of the ZiG.
Retailers Buckling Under Pressure
Zimbabwe operates under a multi-currency system, but the government has mandated the use of ZiG at a fixed exchange rate alongside the US dollar.
The fixed-rate system has left many retailers exposed to losses, as it often diverges significantly from parallel market rates, eroding profits and inflating costs.
OK Zimbabwe has closed several branches in recent months, including outlets in Harare’s low-density suburbs and parts of the central business district.
The company management was recently forced to recall the group’s former General Manager, who had retired, in a bid to stabilise operations amid mounting losses.
The company is not alone. N. Richards Group, once one of Zimbabwe’s largest wholesale and retail players, has also closed multiple outlets nationwide, including branches in smaller towns and farming areas, citing high operational costs and low profit margins.
Other formal players such as Spar and Pick n Pay have scaled down operations, while Choppies exited the Zimbabwean market entirely in 2023.
Informal Sector on the Rise
The collapse of formal retail has been accompanied by the rise of a thriving informal sector. Small-scale traders, vendors, and tuckshop operators—who often deal exclusively in US dollars and bypass statutory pricing, tax, and currency regulations—have increasingly dominated the retail landscape.
These informal businesses offer competitive pricing and convenience, drawing away customers from traditional supermarkets. Their ability to operate with minimal overheads and to source stock through parallel networks has made them resilient in ways formal chains are not.
Industry insiders warn that unless there is a fundamental shift in the country’s monetary policy, more closures are imminent.