Truworths cries foul over Diaspora exits

Business Zimbabwe

Ndaka Majaka

Zimbabwean clothing retailer, Truworths, has been forced to write-off over ZWL$450 000 as defaulters abandon their accounts and leave for the diaspora.

Speaking at the retailer’s results briefing, Themba Ndebele, the group’s Chief Executive, said in the period to July 7, 2019, Truworths had written off a total of ZWL$450 190 up from ZWL$232 304 last year.

As the southern African country continues to experience economic challenges, some Zimbabweans are leaving for greener pastures, a situation Ndebele said had given clothing retailers operating credit accounts a raw deal.

“Absorbing debtors remains a key issue, because people are leaving the country. Trading densities are also going to remain under pressure in the coming year,” he said.

The Truworths boss also bemoaned inflationary pressures, pointing out that they had affected sales volumes and consumer spending.

In the second half, Truworths employment costs surged 55 percent after rising 13 percent in the first half, while other operating costs rose 79 percent in the last half after rising 23 percent in the first half of the year under review.

As Truworths expands its market share, it has started manufacturing men’s shirts and is expected to launch its own fragrance and beauty range in February 2020.

Meanwhile, the group’ profit for the period was ZWL$2,7 million up from ZWL$ 806 916 recorded during the same period last year.

Going forward, Truworths expects the pressure on discretionary consumer
spending and foreign exchange shortages to persist.

“This will negatively affect volumes sold and affordability,” the Truworths boss said.