HARARE – Pick n Pay Zimbabwe has reported a sharp increase in sales earned in United States dollars following the government’s decision to scrap regulations that compelled retailers to price goods using the official exchange rate, although the bulk of transactions remain in local currency.
The retailer said US dollar sales accounted for 48% of total revenue in August 2025, up from 25% in the same period last year. The improvement followed the repeal of Statutory Instrument (SI) 81A of 2024 through SI 34 of 2025, a move the company says has improved pricing flexibility and competitiveness in the formal retail sector.
“The repeal of SI 81A of 2024 through SI 34 of 2025 has restored and strengthened the competitiveness of formal retail across all currencies,” the company said in its latest trading update.
In local currency terms, inflation-adjusted revenue for the six months to August rose 11% to ZWG 5.9 billion, reflecting some recovery in trading conditions. However, in US dollar terms, Pick n Pay estimates revenue of US$188 million for the period, representing a 6% decline compared to the prior year.
Sales volumes were broadly stable, declining by just 1%, indicating that customer demand held up despite ongoing economic pressures. During the period, the group expanded its footprint with the opening of a new store in Shurugwi, adding to its national network.
Profitability, however, came under pressure from rising costs. Gross margin – the proportion of revenue remaining after paying suppliers – declined to 28% from 31%, while the operating cost margin increased to 31% from 27%.
“This performance reflects the pressures of an operating environment characterised by rising costs,” the retailer said, citing higher utilities, logistics and labour expenses.
Looking ahead, Pick n Pay expressed cautious optimism about the final quarter of the year, traditionally the strongest trading period for retailers. The company said trading results for September and October 2025 showed an improvement compared with earlier months and that it is well positioned to fully stock its stores ahead of the festive season.
“Trading results for September and October 2025 showed an overall improvement compared to the preceding months,” the group said. “The segment is well-positioned to fully stock up in anticipation of elevated demand.”
