HomeBusiness DigestFurniture retailers shift to cash sales

Furniture retailers shift to cash sales

Shakeman Mugari

AS the inflation rate continues on a high note, most furniture retail companies now prefer cash sales as opposed to credit facilities.

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Most of the established furniture companies have also increased their interest charges on credit sales while others are now offering hire purchase schemes during promotional periods.

Pelhams Ltd is one of the companies that are now focusing on cash sales.

Chief executive officer Dave Whatman said the company was offering credit sales on promotional basis.

“We are still offering credit sales but at promotion periods. We are moving more towards cash sales because of the prevailing inflationary situation in the country,” said Whatman. “Most companies have since removed the credit scheme altogether. We still have it on our six-week promotion period and after that we can review the situation.”

He said the company had made it attractive for customers to opt for cash sales.

Pelhams is charging an interest rate of 75% per annum, a figure Whatman said was “not so lucrative in light of the high inflation rate”.

Zimbabwe Furnitures is another company preferring cash as opposed to credit on its furniture sales.

Managing director Percy Kadziyanike said although the group was still offering credit facilities there was now a deliberate policy to encourage cash sales. “Ours was a deliberate move to try and accommodate all customers, and in this case the main target was the informal sector,” said Kadziyanike. “It was not necessitated by the inflation increase.”

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