By Melody Korongwe
Harare, Zimbabwe – Pick n Pay, a prominent retail player in Zimbabwe, is heralding a significant “turning point” for the country’s formal retail sector, buoyed by recent shifts in foreign exchange policy.
The company, which operates through its associate TM Pick n Pay, is now poised for an ambitious expansion drive, including the development of new stores and a major commercial complex in Bulawayo.
For years, formal retailers in Zimbabwe grappled with a challenging operating environment, particularly due to exchange rate distortions that often put them at a disadvantage compared to the informal sector.
A government policy that previously mandated adherence to the official exchange rate severely impacted their competitiveness. However, the recent repeal of Statutory Instrument 81A through SI 34 of 2025 has been a game-changer.
This policy shift has allowed formal retailers greater flexibility, leading to a noticeable uptick in USD sales, which have reportedly risen from 23% to 32% of total sales.
In its latest annual results to February, Pick n Pay noted that sales volumes, which were flat last year, have now shown an 8% increase, reflecting renewed consumer demand. This positive momentum has emboldened the retailer to re-enter expansion mode.
The focus for new Pick n Pay outlets will be on “high-potential stores in mining towns,” a strategic move to tap into areas with growing economic activity and purchasing power.
The company also plans to bolster its liquor category development and address supply chain inefficiencies in remote areas, further extending its reach and service delivery.
Perhaps the most significant development on the horizon is Pick n Pay’s ambitious plan for Bulawayo. Its property arm is set to develop what it describes as “the city’s largest mall of its kind.”
This expansive complex is envisioned to house over 220 small shops, a variety of food outlets, and office space.
The tenant mix will strategically combine smaller businesses, which are expected to generate higher rental yields, with key anchor tenants, including a TM Pick n Pay supermarket and a KFC restaurant, ensuring a diverse and attractive offering for consumers.
This renewed confidence and investment by Pick n Pay signal a positive outlook for Zimbabwe’s formal retail landscape, suggesting that the policy adjustments are beginning to yield tangible benefits for businesses and consumers alike.
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