Au revoir, Shoprite and Game Stores

Before the change we Malawians cried for, for many years, in 1994, we would buy things from South Africa by Mail Order. The choice came to us, Malawians, through glossy catalogues like NIZAMS. You knew someone had ordered from the same shop if jersey or whatever looked the same.

Either NIZAMS, which is still operating in Johannesburg, South Africa, must have given way its Mail Order business to online shops in the era of the internet or must have closed it due to the flooding of cheap (in price) Asian goods or tonnes of kaunjika (second-hand clothes) or the irreversible sliding downwards of the Malawi Kwacha exchange rate to the South African Rand. Then, that is before 1994, K1 was equal to 1 Rand. So, even those who did not earn adequately could afford to send the money to South Africa and buy from Mail Order.

Today, it is almost impossible to do so as, among other challenges, the K1 is selling at R0.0001. So, the likes of NIZAMS had to close mail business or find another platform. After the change that we cried for, we saw South African retail giants establish shops in Malawi.

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Notably, Shoprite (mostly groceries), and later, Game Stores (mostly hardware and household appliances). Where these two giants are, the clothes retailer, PEP Stores, comes. So, do other South African eateries.

Anywhere you go, Namibia, Zambia, Botswana, and Nigeria, the three and eateries are almost always together. First, shoprite established itself at Chichiri in Blantyre. It must be over 20 years ago.

We make such intelligent guesswork because Shoprite came when Dr Bakili Muluzi was president and he retired, by force of the Malawian Law, in 2004. That was 22 years ago. These shops offered Malawians goods that were hitherto obtainable only in South Africa.

Then they expanded to Lilongwe together. Finally, to Mzuzu, together, except Game Stores. Some South African shops, like Supreme Furnishers, brought in a different model of selling by hire purchase.

Hire purchase is a credit system whereby you pay a little and have and use but do not own the goods until you finish paying. Payment is periodic, usually monthly. Malawians, being what we are, collected furniture but never finished paying.

They changed places, presented falsified documents, faked their own death, faked villages and chiefs, and disappeared with collectively millions of kwacha. Supreme Furniture was reduced from a huge showroom to a tiny room. However, sadly the shops are winding down their operations in Malawi.

As we are writing this, Shoprite in Mzuzu (where Game Stores was planning to open) is closed and in Lilongwe it is closed for its handover stocktaking. And, in Blantyre? Shoprite, Game Stores and PEP are like triplets.

When one finds the conditions challenging, it is most likely two others must be feeling the same. And they will leave for greener pastures together. Why are they leaving?

Rumour has it that Shoprite is being taken over by an Indian family (but Malawian by birth). Rumour in Malawi is news. The majority of what people say turns out to be true.

Ignore it at your own peril. Learn to sift it though. So, this Shoprite (insert new name), will join Sana, Chipiku Plus, and others as major retailers in Malawi.

And they will succeed, as expected of Indian shops, where others fail; where we fail. People’s Trading Centre (PTC) and Chipiku Stores were serious shops, available in all corners of Malawi, from Mchinji to Likoma and from Nsanje to Chitipa. Why do retail businesses succeed in Malawi?

Same conditions and forex challenges. That is topic for another day.

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