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Forex shortages Stifle Tyre And Tube Retailers

Zimbabwe’s largest tyre and tube retailer, National Tyre Services Limited has not been spared by the recent inflationary pressures which has resulted in suppressed sales and erratic supply due to foreign currency shortages.

According to the group chairperson James Moyo, the rise in inflation has affected their consumers’ living standards and compounded the trading challenges for the business sector.

“The operating environment continues to be characterized by a steady deterioration in the economic fundamentals, in particular the increase in inflation and the shortage of foreign currency.

“These have affected living standards for our consumers and compounded the trading challenges for the business sector. This has led to an erratic supply of imported goods and services,” he said.

According to Moyo, the group is banking on the successful implementation of the government’s Transitional Stabilisation programme to turn around the fortunes of their business, currently struggling due to the prevailing economic situation in the country.

“The impact of the fiscal and other measures introduced by the Government in October 2018 are likely to have a significant impact on business in the second half of the financial year.

“We believe that the growth strategies implemented to date will strengthen the company’s ability to provide a modern customer experience, weather these challenges while growing market share and preserving value for stakeholders.

“These initiatives will include expansion of the Branch network around the country with particular emphasis within Harare,” he added.

Meanwhile the group revenue for the year ended September 2018 increased by 23% and profit before tax increased by 39% from that attained over the same period prior year. Increased profit performance was a result of the combined effect of direct-sourcing strategy and wider distribution network.

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