Business / Local
Power Sales shuts down 29 stores
20 Jun 2014 at 16:06hrs | Views
BULAWAYO-BASED leading clothing retailer Power Sales has closed 29 shops across the country in recent months due to the tough operating environment, an official confirmed yesterday.
Power Sales people support executive Fanuel Mahachi said the stores targeted for closure as part of a right-sizing initiative were not profitable.
"The prevailing economic conditions coupled with some landlords cancelling our lease agreements have caused the closure of selected non-profitable stores," he said.
"As a result, the company embarked on a right sizing exercise that has seen us shedding non-performing stores off."
However, Mahachi said the restructuring would see the re-opening of big and better stores in Bulawayo and Harare.
He said staff at the closed stores would be accommodated at the new shops that would open next week. In 2012, At Ready Wholesalers trading as Power Sales shut down non-profitable stores throughout the country.
"This latest exercise has not affected our staff who have since been absorbed in our new and revamped stores," he said.
"We are actually relocating some stores to better and busier locations and by the 27th of this month we would be opening a bigger and well fitted store at Pioneer House along 9th Avenue in Bulawayo and another exciting opening on the same date will be in First Street in Harare."
The closure of Power Sales stores comes at a time when there is increasing uncertainty over the economy. Companies, especially in Bulawayo, continue to close down while some are relocating to Harare resulting in massive job losses.
A recent survey by the Zimbabwe Congress of Trade Unions (ZCTU) showed that a total of 2 065 people lost jobs from January to date across the country.
ZCTU said 9 000 people did not return to work in January from the annual shutdown as employers failed to reopen.
Power Sales people support executive Fanuel Mahachi said the stores targeted for closure as part of a right-sizing initiative were not profitable.
"The prevailing economic conditions coupled with some landlords cancelling our lease agreements have caused the closure of selected non-profitable stores," he said.
"As a result, the company embarked on a right sizing exercise that has seen us shedding non-performing stores off."
However, Mahachi said the restructuring would see the re-opening of big and better stores in Bulawayo and Harare.
He said staff at the closed stores would be accommodated at the new shops that would open next week. In 2012, At Ready Wholesalers trading as Power Sales shut down non-profitable stores throughout the country.
"This latest exercise has not affected our staff who have since been absorbed in our new and revamped stores," he said.
"We are actually relocating some stores to better and busier locations and by the 27th of this month we would be opening a bigger and well fitted store at Pioneer House along 9th Avenue in Bulawayo and another exciting opening on the same date will be in First Street in Harare."
The closure of Power Sales stores comes at a time when there is increasing uncertainty over the economy. Companies, especially in Bulawayo, continue to close down while some are relocating to Harare resulting in massive job losses.
A recent survey by the Zimbabwe Congress of Trade Unions (ZCTU) showed that a total of 2 065 people lost jobs from January to date across the country.
ZCTU said 9 000 people did not return to work in January from the annual shutdown as employers failed to reopen.
Source - Southern Eye
