The Sunday News
Shepias Dube Business Reporter
BULAWAYO retail giant, Food 4 Less, has invested about $50 000 on a new supermarket scheduled to open next month in the high density suburb of Emganwini as the retail sector continues to expand.This brings the number of Food 4 Less outlets in the city to two.
In an interview with Sunday Business last Wednesday, Food 4 Less director Mr Joseph Williams said the retail outlet had become a household name and as such it must spread its wings in the city.
“This is a special way of thanking the people of Bulawayo for supporting us in spite of the competition characterising the retail business. We are trying to bring business to the door steps of our customers,” said Mr Williams.
He said the decision to open a branch in Emganwini was reached after realising that there were no big shops in the area and customers were forced to travel to town for meaningful shopping.
“We are also taking advantage of the new suburb which was recently opened by the Vice-President,” he added.
The new Emganwini-Mbundane suburb which was officially opened by Cde Phelekezela Mphoko about two weeks ago is located less than a kilometre from the new shop.
Mr Williams said the new project would stock a wide range of products and create about 30 jobs.
He said as part of the corporate responsibility strategy the company would recruit 30 percent of the employees from Emganwini area.
“We have since met the local councillor and we assured him that the new shop will employ some youths from the area,” said Mr Williams.
Residents who spoke to Sunday Business were excited with the new developments and said the presence of a big shop like Food 4 Less would save them from unscrupulous informal dealers who were taking advantage of people.
“Informal traders have been milking us and we are happy that a big shop is now opening in our area with its low prices and conducive shopping environment,” said Mrs Zibusiso Chakanyuka.
She said other shops must emulate Food 4 Less that has empowered locals by offering them employment opportunities.
Residents of Bulawayo have been complaining over shop owners who shun their children and prefer outsiders.
In spite of the economic hardships facing the country the retail sector is reportedly doing well, judging by the number of supermarkets that are mushrooming in most urban centres.
Big names like Choppies and Tilus Supermarkets have managed to open branches all over Bulawayo, with Choppies even extending as far as Harare.
However, Tilus Supermarket sales officer Mr Trust Gumbo said the retail sector had not been spared by the liquidity crunch which has forced low income customers to revise their consumption patterns.
“Our economy is in a crisis and people are now buying those things which they cannot do without. The shopping spree we witnessed during the early years of dollarisation is now a thing of the past,” he said.
Mr Gumbo said there was stiff competition in the retail sector and this had forced many businesses to close shop.
He said the opening of many branches in the same area was not a sign of growth but a strategy to protect territory from competitors.
“Competition is all over and if there is space close by it’s better to take it than leave it to a competitor. It’s a survival strategy,” he said.
He said it was better to divide your customers than to share them with competitors.
Meanwhile, the chairperson of the Retailers Association Bulawayo chapter Mr Simbarashe Phiri, said it was unfortunate that most retail business in the city was now dominated by foreigners saying this was against the spirit of indigenisation and economic empowerment of ordinary people.
“The retail sector is now controlled by foreigners and their proxies who are taking advantage of local players,” he said.
