Zimbabweans' buying power increases

Zimbabweans' buying power increases
Shopping inside TM Borrowdale
Published: 17 July 2018
The buying power of Zimbabweans is strengthening with revelations that consumers are spending more goods than previously.

Of the $534 million generated by Meikles Holdings in revenue during the just ended financial year ending on 31 March 2018, 91% came from its supermarkets, operating as TM and Pick'n'Pay.

A financial analyst with a local research firm, Mr Batanai Mastika said this topline performance signals the strengthening buying power of consumers in general.

"As consumers become confident of the future, their expectations also rise, hence they tend to spend more. Meikles results show that consumers are spending more compared to the previous year," he said.

Mr Matsika added that this bullish mood by consumers is evident of improving macro-economic conditions in this new economic era.

A retail analyst, Mr Denford Mutashu agreed that retail chains are registering record sales since the coming in of the new dispensation.

"A general assessment of the retail industry shows that the major retail chains in the country are performing well. Despite the coming in of vendors, main retailers are still registering increased sales," he said.

The financial results of Meikles also show a robust performance of its hotels, with a $4.1 million in earnings before interest, compared to $1.8 million in the previous year.

This was on the back of improved occupancies in hotels as the tourism sector rebounds, largely benefiting from an improvement of the country's perception to the outside world.
- zbc
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