Price Gap Pushes Consumers to Informal Markets

Written by on January 22, 2025

Consumers are increasingly favoring informal markets over formal retailers due to significant price differences, with items in formal shops often costing nearly double.

This shift has raised concerns, as some informal markets reportedly sell counterfeit goods, yet consumers remain undeterred.

Denford Mutashu, President of the Confederation of Zimbabwe Retailers, highlighted that price disparities are forcing some formal shops to close, with their premises turning into bays for informal traders.

Most major supermarkets, sell a pack of 100 diapers for USD $17, while informal markets offer the same for USD $10. Similarly, a 10kg bag of mealie meal costs USD $6 formally but converts to USD $13 using the official rate.

Formal retailers are urging policy adjustments to create fair competition, as the rise of informal markets threatens the future of the formal retail sector.


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