Retailers plan to set up distribution centres

Published: 24 May 2018

THE Confederation of Zimbabwe Retailers (CZR) plans to set up distribution centres in smaller towns as a way of containing costs associated with transport.

High transport costs from urban centres to rural areas are blamed for the differences in prices of commodities, which are being sold at about 30 percent more in rural areas.

The CZR president, Mr Denford Mutashu, said the plan was informed by transport costs incurred by rural retailers.

"We have a situation whereby the price of basic commodities in outlying rural areas in the country is higher than those in the metropolitan centres. This is mainly because some shops in the rural areas are getting their stocks from Harare and other cities," he said.

Mr Mutashu said the proposed distribution centres will therefore cut on transport costs for rural retailers and this will result in reduced prices for commodities.

"We are looking at having distribution centres in small towns and at growthpoints through engaging the manufacturers of some of these products. This will significantly push down the price of basic commodities and make them affordable to the consumers," he said.

A general dealer in Lower Gweru, Mr Siphosami Mpofu said the price of commodities in the area were about 30 percent more than what is obtaining in Gweru as they factored in transport costs. He said the prices could be adjusted if goods are transported to their area without related costs.

The proposal to establish distribution centres comes after CZR launched a retail price index recently to assist consumers to shop wisely.

According to the retail lobby group the facility would be available on the organisation's official website and is meant to inform them and save time lost through going around different supermarkets comparing prices.

The Consumer Council of Zimbabwe reported that the cost of living increased by 2.88 percent last month.
- chronicle

Tags: Retailers,