Vendors flood the market, retailers baffled

As the unemployment continues to escalate to unmanageable levels vendors' numbers are continuing to escalate in Zimbabwe's urban areas and growth points amid concerns by registered retail shops that the vendors are now taking their customers as they just mount their wares anywhere even at the entrance of the shops.

Unlike retail shops vendors do not do their business quite but orate to the public so as to attract customers. Almost all the commodities sold in the shops are found just outside the shops with the vendors creating a very stiff competition for the big shop and they even discount the products if the clients say they have a shortage of money.

Just at along Lobengula Street close to Egodini in Bulawayo in-front of TM Supermarket one gets soaps, bread, fish, chicken pieces, cabbages, tomatoes, plates, dishes to mention but a few which are all found in the shops.

These vendors shout to the customers stating the prices of their goods which is not done by the shops.

This has become the order of the day in the country's towns.

People outpace each other competing for cheap second hand clothes and general staff in the city's flooded flea markets.

Despite the intense heat that hit the streets of Harare and Bulawayo, people could be seen jostling up and down the streets hopping from one vendor to another in search for goods at comparatively low prices.

Hundreds of vendors are tightly packed in the cities' pavements with their commodities trouncing the traditional retailers' prices.

There is generally everything on vendor's make shift shops ranging from clothes to food stuffs.

Shopping on the pavements has become a common feature while the vendor's make shift shop is now a preference for many struggling Zimbabweans.

This state of affairs is a factor of over a decade-long economic and political crisis that effectively shrunk the formal sector to such a point that re-establishing the formal economy will not be as easy as some people perceive.

As vendors line the pavements and street sidewalks like busy ants, the growth of retailers' sales have slowed down.

A retailer who spokes on conditions of anonymity admitted that informal traders are a major blow to their businesses.

"Indeed vendors are a major blow to us. What can you expect when someone sits in front of your shop selling the same products as yours at a lower price?" queried the retailer.

"It's obvious the consumers will go for the cheaper products," he added.

While retailers pay licences and taxes, vendors always escape paying these.

Zack Hussein, another retailer said, "vendors drive away customers as they pollute the city and no customers would like to associate themselves with a dirty shop.

"Some vendors sell same products as ours thereby creating a direct competition with no overheads," added Hussein.

He went on to blast revenue authorities for failing to protect retailers despite them paying taxes.

Aaron Chimombe, a business commentator revealed that allowing vendors on the streets encourages the flow of money to the informal sector.

"When we allow vendors in the streets, we are actively promoting the deviation of money from the formal system to the informal system because sales from shops will reduce.

"Once the sales reduce companies pay less tax. This also forces retailers to retrench which negatively affects Pay As You Earn (PAYE) and the income going to NSSA," he said.

He however said "vendors should operate from designated places which should not be far from the bus terminuses."

Samuel Wadzai, Director of National Vendors Union Zimbabwe said, "That is not a big problem, retailers should assist vendors to be organised."

"It shows how bad how bad the economy and everyone should come on board to address this issue. There is no need to blame the vendors," he said.

A consumer who spoke to 263Chat said that customers will always go for the cheaper product.

"A wise customer will always go for the cheaper product, why compromising? queried Varaidzo  Moyo who spoke to 263Chat while buying groceries for her family just outside Food World stores at Copacabana Bus terminus.

"The products are the same as those in the shops so it's wise to save money for other things by purchasing on the flea markets," said Mrs Moyo.