Published by the government of Zimbabwe
Happiness Zengeni
31 December 2007
Harare — TM Supermarkets will soon open a branch in Magaba, although it is struggling to get stock, while Cowdrey Park and Northend in Bulawayo would be opened in the New Year, Meikles retail director Mr Dave Mill said.
Mr Mills said that the huge vacuum in the distribution sector made restocking difficult as collection depots and factory shops have mushroomed.
"It's a major problem for nationally represented retailers. We are living pretty close to the edge"
TM Supermarkets were holding stock covering "just over a quarter of a month" while the Meikles department stores were holding less than a month's stock.
Fuel prices are also adding to the woes, distorting the product chain. Moving a 7-tonne truck from Harare to Chitungwiza costs $250 million.
Despite all these setbacks, Mr Mills said that they have been "surprisingly robust" sales where stocks last only a few hours.
That presented TM with a decision-making problem -- when there are flashes of stock presence -- whether to procure and resell or stock up in expectation of commodity inavailability in the near future.
Mr Mills said that TM would continue engaging NIPC on the issue of regional pricing parity as locally manufactured products were readily available in the region four to five times higher.
The division was also looking at introducing an import facility with South African retailer Pick 'n' Pay.
Credit facilities in the department stores had been suspended but Meikles had recently engaged Kingdom to consider the generation of credit facilities and take over a "robust debtors book".
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