Hyperinflation and Its Impact on the Retail Sector in Zimbabwe

Abstract

This study explores the impact of hyperinflation on the performance of OK supermarkets and the retail sector in Zimbabwe. This study used a mixture of research methods combining the qualitative and the quantitative approaches, although with a major leaning on the qualitative methodology. The major challenges bedeviling the retail supermarkets in Zimbabwe are inextricably linked to the hyperinflation which is the result of economic instability caused by sanctions, corruption and a host of other governance related factors. The hyperinflation in Zimbabwe contributes significantly to the poor performance of OK supermarkets and broadly the retail sector and other sectors of the economy. This study argues that OK Zimbabwe and others in the retail sector adopted survival strategies during the hyper-inflationary environment in Zimbabwe. Faced with increased competition, hostile economic market conditions, many retail grocery supermarkets and shops in Zimbabwe are devising ways to improving their performance against the backdrop of adverse economic conditions. To be competitive, some business administration and management scholars as well as policymakers have advocated for more innovative ways in keeping the businesses afloat. The survival and profitability of Zimbabwean businesses remains glaringly volatile considering the little support they are getting from the government. It also emerged from this study that the Zimbabwe business sector together with the government have implemented various strategies that contributed monumentally in mitigating the impact of hyperinflation in Zimbabwe. The study concludes by recommending dialogue between Zimbabwe and the West for the unconditional removal of sanctions owing to their debilitating impact on the economy and being the evil instigator of the prior and current hyperinflationary environments. There is need for robust policies that will help not only to arrest inflation but to resuscitate the comatose Zimbabwean economy.