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Oliver Kazunga, Senior Business Reporter
SUBDUED product supplies from the manufacturing sector have forced retailers to limit sales promotions to consumers this festive season, the Confederation of Zimbabwe Retailers (CZR) has said.

Of late, the country has experienced foreign currency shortages resulting in local manufacturers failing to import critical raw materials needed in their production processes. Speaking by telephone from Harare, CZR president Mr Denford Mutashu said sales promotions were offered to customers as an arrangement and agreement between the retailers and manufacturers of particular products.

“Sales promotions such as discounts to consumers may also come up along with some enticements where consumers win prizes,” he said.

“But I think you may appreciate that from the beginning of the year up to October, the retail sector performed so well unfortunately from October up to today the sector has not been doing very well due to some supply constraints on some key products.

“For example, the beverages suppliers are facing foreign currency challenges and that has limited their capacity to supply the market with the required quantities,” said Mr Mutashu.

He said while the Reserve Bank of Zimbabwe has insisted that the exchange rate between the United States dollar and the bond notes was at 1:1, the situation on the ground was different.

The financial market distortions, Mr Mutashu said, were largely attributable to the shortages of hard currency on the market where business relies on buying forex from the black market where it is is expensive.

“That’s actually something that has affected retailers’ stocking ahead of the festive season.

“The few retailers and wholesalers that you see holding stock have had to did deep into their capital to get more money for restocking,” he said. — @okazunga