SPAR Zimbabwe will now offer cashbacks on a one-to-one basis, as the retailer has witnessed a declining intake of cash at its 31 stores.
- Spar pulls out of Zimbabwe
This comes as The Spar Group has officially pulled out of Zimbabwe through their Spar Distribution Centre business after the majority stakeholder in the centre, Innscor Africa, sold six corporate stores.
Speaking at a Press briefing on Friday, Spar Zimbabwe managing director, Terence Yeatman said The Spar Group had pulled out due to prevailing economic conditions, including cash shortages.
The economy has, in recent weeks, been dominated by a high cash demand, leading to shoppers hitting stores in search of cash.
“We have had to look at it on a week-by-week basis. With the declining intake of cash at our stores, the majority of transactions are now swipe. Right now, our cashback policy is a one-to-one basis and the Spar customer must have a Spar loyalty card,” he said.
“We have obviously looked at reducing our costs. The cost structure has been a big part of our strategy and the second strategy for us has been to focus on the independent retailer wherever they operate.”
Yeatman said liquidity challenges behind recent delays in foreign payments had caused suppliers to increase their prices, but promised to watch theirs so as not to inconvenience customers.
Cash shortages have worsened since February this year.
Cashbacks allow shoppers to access funds from their accounts.
However, cash demand has spiked, causing retailers, apart from Spar, such as TM Pick n Pay, OK, and Food World, to increase requirements to access the cash back facility.
Spar South Africa chief executive officer, Graham O’Connor confirmed economic conditions were the reason behind moving out of the Zimbabwean market.
The Spar Distribution Centre ceased operations at the end of last year.
The six stores sold by Innscor were Village, Bridge, Golden Stairs, Queensdale, Letombo and Mutare.
Currently, Spar Zimbabwe is operating 31 stores and three SaveMor shops around the country and has this year launched three stores in Helensvale, Waterfalls and Kamfinsa.
“We will continue launching new stores, as we rapidly expand. We are happy to assure you that the 31 Spar stores around the country will continue to serve our loyal customers, as they have been for the last 49 years,” Yeatman said.
