Examining The Impact of Street Vending o

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ISSN

Business And Management Research Journal 2026-6804


Gerald & Donald, Volume (10) Issue (4): 58 – 74 June- 2020. RESEARCH PAPER

Examining the impact of street vending on the retailing


sector in Zimbabwe: A case study of Harare
metropolitan
*Gerald Munyoro1 and Donald Gwisai2
1,2
Graduate Business School, Chinhoyi University of Technology, Zimbabwe
1
*Corresponding author email: [email protected]

Abstract

The aim of the study was to examine the impact of street vending on
the retail sector in Zimbabwe. The study adopted the pragmatism
philosophy which advocates for the use of mixed methods and Harare
Metropolitan was used as the case study. The data for the study was
collected using questionnaires as well as focus groups and secondary
data. The quantitative data analysis approach was used with the help
of SPSS. Thus the study showed that street vending has a negative
impact on the retailing sector in particular and the economy at large,
especially the tourism as it causes unnecessary congestion and
*Corresponding Author negative social impact in the Central Business District. Therefore, the
study recommends that the government removes street vendors from
Gerald Munyoro the Central Business District and put them in designated areas. In
addition, the government should build appropriate infrastructure
Graduate Business School, throughout the country as street vending has become a menace to all
Chinhoyi University of local authorities in Zimbabwe and throughout the region.
Technology, Zimbabwe
Key Words: Local government, Local authorities, Street vending,
*Corresponding Author Email: Harare Metropolitan, retail sector, Central Business District, Security
1
[email protected] agencies

Introduction and power hunger crept into policy makers such that
Zimbabwean policies has become highly unpredictable,
Zimbabwean policies as noted by Adesina (2007) and top-down and short-range in focus (Munyoro et al, 2016).
Munyoro et al (2016) have evolved over the years in line As all this unfolds, shockingly the media, which is the
with the agendas of those in power. Therefore, it is fourth estate (after the executive, legislature and
critical to understand this evolvement and the judiciary) and which is responsible for checks and
background of the public policies in Zimbabwe for the counterbalances (Chang, 2008) has not done enough to
reason that this has influenced the frame in which the help the situation (Munyoro et al, 2016). Thus, the
Zimbabwean policies have been formulated, notable examples of such ill thought policies are the
implemented and promoted over the years (Munyoro et Economic Structural Adjustment Programme (ESAP), the
al, 2016). As noted by Adesina (2007) and Zhou (2012) Indigenization and Economic Empowerment Policy, the
policies that were crafted and implemented during the controversial Fast Track Land Reform Programme
first decades of Zimbabwe‟s independence were (FTLRP) and the Zimbabwe Agenda for Sustainable
genuinely meant to benefit the Zimbabwean people and Socio-Economic Transformation (Zim-Asset) (Munyoro et
therefore, these policies were principally influenced by al, 2016; Munyoro & Dube, 2017; Chigunha et al, 2018).
the nationalist agendas of nation-building and economic Although, these policies were aimed to serve as
development, but with the passage of time, greediness mechanisms of conflict management, harnessing and
58
balancing competing values and interests within the Britannica.com). Harare is now the most populous city in
nation as well as allocating resources to marginalized Zimbabwe (worldpopulationreview.com; zimstat.co.zw)
citizens (Zhou, 2012) sadly this has not been achieved to and has an estimated population of 1 606000
date as argued by Munyoro et al (2016). In short, (worldpopulationreview.com; zimstat.co.zw).
although these policies were targeted at empowering Furthermore, Harare is now a metropolitan province
local indigenous people through financial liberalisation, which incorporates the municipalities of Chitungwiza and
land reforms, tax policy and investment policy among Epworth (worldpopulationreview.com; zimstat.co.zw). In
others and this has not been achieved as evidenced by addition, Harare comprises of white people, who are
the current level of unemployment in country (Dye, 1979; originally from United Kingdom as well as Asians from
Anderson, 2003; Zhou, 2012; Munyoro et al, 2016). In India and Greeks and black people
fact, the level of unemployment has remained high (worldpopulationreview.com). In Harare, the official
resulting in economic crisis which has forced several languages are mainly Shona, followed by English and
manufacturing companies to close down nationwide to Ndebele then Chewa, Chibarwe, Kalanga, Khoisan,
date (Tibaijuka, 2005; Munyoro et al, 2016). Additionally, Nambya, Ndau, Shanaan, Sotho, Tonga, Tswana, Venda
there has also been mass departure of people migrating and Xhosa (worldpopulationreview.com; zimstat.co.zw).
from rural to urban areas in search of healthier living In addition, Harare sits on a plateau at an elevation of 1
environments which has resulted in the growth of 483 metres (4. 865 feet) above sea level and its climate
unlawful residential settlements putting pressure on an falls into subtropical highland category and the original
already growing urban population (Mutizwa, 2010; Hove, landscape was described as “Parkland” (Britannica.com).
2013; Munyoro et al, 2017). Consequently, this has In fact, it is worth noting that the Harare area at the time
resulted in many people seeking the easy and available of founding of the city was in fact poorly drained and the
option surviving as formal employment opportunities earliest development was on sloping ground along the
remain low and remote, thus turning to street vending as left bank of a stream and that is now the course of a
this is considered to be a valuable „safety net‟ for trunk road now popularly known Julius Nyerere Way
unemployed youth, redundant civil servants and former (roodeportrecord.co.za; Britannica.com). Thus, the first
workers (Sharit, 2012; Hove, 2013) and is also seen to area to be fully drained was near the head of the stream
be a survival strategy (Mbiba & Ndubiwa, 2008). and was named Causeway (roodeportrecord.co.za;
Consequently, this study seeks to examine the impact Britannica.com). This area is now the site of many of the
of street vending on the retail sector focusing on Harare most important government buildings including
Metropolitan as well as identifying the causes of street Parliament House (the then the Senate House) and the
vending in Zimbabwe and to make recommendations on Office of the President after the position was abolished in
strategies that can be employed to deal with street 1988 (the then the Office of the Prime Minister) which are
vending in Zimbabwe and the whole region. mainly found in Jameson Avenue (now Samora Machel
Avenue) in 1970 (roodeportrecord.co.za;
The History of Harare Metropolitan Britannica.com). That said, Harare now boast of Northern
and North Eastern suburbs which are home to the more
affluent population of the city such as high ranked
Harare is the City of Zimbabwe and got its name from the
government officials and who most of them live in
village near Harare Kopje which was under the Shona Borrowdale Brooke. Additionally, these northen suburbs
Chief whose name was Neharawa and whose nickname are often referred to as „kuma dale dale‟ because of the
was “He who does not sleep” meaning „harare‟ in Shona
common suffix –dale found in some suburbs such as
(Room, 2003). Harare became official in 1982 that is two
Avondale, Greendale and Borrowdale
years after independence from Great Britain
(zimfieldguide.com; greatzimbabweguide.com).
(Britannica.com). The City was founded in 1890 as a fort
by the Pioneer Column, which was a small military force The sad news is that Harare has been
of the British South Africa Company and was a military unsympathetically affected by the political and economic
volunteer force of settlers which was organised by Cecil crisis which has resulted in the poor delivery of essential
Rhodes (roodeportrecord.co.za). It was later named Fort services such as rubbish collection, street, traffic lights,
Salisbury after The 3rd Marquess of Salisbury, then street lights (The Vancouver Sun, 2009; Reuters, 2016).
United Kingdom Prime Minister –Lord Salisbury (Roman, Hence, Economist Intelligence Unit‟s liveability poll voted
2013; roodeportrecord.co.za; Britannica.com) and it Harare as the toughest city to live in and the world‟s least
subsequently became known simply as Salisbury liveable city out of 140 cities based on stability,
Britannica.com). In fact, Company administrators healthcare, culture and environment, education and
demarcated the city and ran it until Southern Rhodesia infrastructure (The Vancouver Sun, 2009; Reuters,
achieved responsible government in 1923 2016). Yet, Harare is the location of several international
(thepatriot.co.zw; Britannica.com). It is worth noting that summits such as Non-Aligned Movement,
Salisbury Polo Club was formed in 1896 and afterwards, Commonwealth Heads of Government Meeting, World
Salisbury was declared a municipality in 1897 and it Council of Churches, All-Africa Games, 2003 Cricket
became a city in 1935 (Horace, 2012; World Cup and ICC Cricket 2018 World Cup Qualifier
roodeportrecord.co.za; Britannica.com). Thereafter, matches (zimfieldguide.com; greatzimbabweguide.com).
Salisbury was then affirmed as the seat of the Southern Additionally, Harare is now known for hosting Harare
Rhodesian by the Rhodesian government and later International Festival of the Arts (HIFA), which has
became the capital city of the Central Africa Federation, featured acclaimed artists such as Cape Verdean singer-
that is between 1953 and 1963 (thepatriot.co.zw;
59
Sara Tavares and many others (zimfieldguide.com). This move from place to place by carrying their wares on push
includes tv shows such as the reality TV shows which carts or in baskets on their heads.
was shot in Harare including the Battle of the Chefs In English-speaking Caribbean, hawkers are
(zimfieldguide.com; greatzimbabweguide.com). Likewise, commonly referred to as higglers and they sell items
the capital city is Zimbabwean‟s leading financial, such as snacks, cigarettes and phone cards just to name
commercial and communications centre as well as a few in roadside stands and public transit hubs like
trading centre centre for tobacco, maize, cotton and Roadport, Mbare musika or Renkini in Zimbabwe
citrus fruits. In addition, the city hosts the manufacturing (Mayhew, 1861; Chesney, 1970). In African
industries such as textiles, steel, chemicals and gold metropolitans such as Johannesburg, Harare, Maputo
although the production is very low (wto.org; and Lusaka just to name a few, hawkers, commonly
zimfa.gov.zw; tradezimbabwe, com). In fact, the inflation referred to as vendors and are seen everywhere selling a
is on the rise prompting the government to ban the wide range of goods such as fish, fruits, vegetables,
publication of inflation data affecting the cost of living, juices, tea, snacks, cooking oil, soap, bread, clothes and
that is at the time poverty is endemic as a result of high books which are laid on the ground in the streets in the
unemployment and this is as a result of the closure of so central business district (Ndhlovu, 2011; MG Africa,
many companies in Harare (Reuters, 2016). 2015; Nsakanya & Phiri, 2018). As is always the case,
these areas are the most crowded parts of the city and
Literature Review their prices are lower than the shops and as a result
attracting people from lower incomes (Ndhlovu, 2011;
What is Street Vending? MG Africa, 2016; Nsakanya & Phiri, 2018). Additionally,
Bhowmik (2005) identified street vendors as self-
The informal sector is an umbrella term that includes the employed workers in the informal economy who sell
street vending phenomenon (Skinner, 2008; Ndhlovu, goods to the civic even though they will be doing so on
2011) and accordingly, street vending can be referred to make shift stalls in no designated areas (Ndlovu, 2011;
as the fast buying and selling, even though it has less Nsakanya & Phiri, 2018). In addition, a street vendor is
profit on the part of the vendors (Zimcodd, 2015; an individual with temporary makeshift stalls, such as
Munyoro et al, 2017). Furthermore, other scholars have folding tables, crates, collapsible stands, and wheeled
defined street vending as the retailing or wholesaling of pushcarts that can be moved from one point to the other.
goods and services in the public streets (Mitullah, 2004) In short, vendors are people who do not have a fixed
and other related places such as alleyways, boulevards location because their makeshift stalls can be removed
and avenues (Bromley, 2000). from the streets in the night, and these stalls displays
In addition, Mitullah (2004) and Zimcodd (2015) products on cloth or plastic sheets (Sharit, 2005; Roever,
defined street vending as an action which takes place 2010; Ndhlovu, 2011). Interestingly, vendors can be
outside covered premises or workspace on the street mobile to an extent that they can walk through the streets
pavements, sidewalks and also at bus stops. or they can cycle as they go about selling (Roever, 2010;
Additionally, Cross (1998) described street vending as a Ndhlovu, 2011).
key characteristic of the urban informal economy In India, its National Policy on Urban Street Vendors
(Ndhlovu, 2011). With reference to Lyons & Snoxell was launched in 2004 whereby the government of India
(2005), defined street vending as an economic activity (2004) elucidated that a street vendor is a person who
which incorporates selling without a permit and outside a offers goods or services for sale to the general public
formal designated location, and usually there is non- without having a permanent built up structure. That said,
payment of municipal or national taxes as an individual this is the reason why street vending is the most visible
self-allocates oneself a place for trading. activity which is popular in developing countries (Lyons &
Snoxell, 2005) and that is why many poor people in
What is a Street Vendor? different countries prefer to buy goods, clothes and
accessories from street vendors because they usually
The terms vendor, hawker, costermonger, hucksters, sell cheaper and affordable goods than the ones sold in
demonstrator, pitchman or peddler are often used formal retail shops (Bromley, 2000; Mitullah, 2004; Saha,
synonymously and refers to a single group of itinerant 2009; Ndhlovu, 2011). Accordingly, in this study street
salesmen who were initially involved mainly in selling vending is best described as an illegal activity where the
textile fabrics and other inexpensive goods such as vendors sell their merchandise in non-designated areas,
handicrafts and food items and these vendors, whether that is outside enclosed premises or covered workspace
stationary or mobile, were often involved in advertising on street pavements, sidewalks, bus stops and other
their goods by loud street cries and chants as well as public places as the case with Zimbabwe and many other
conduct banter with customers in order to attract developing countries.
attention and in the process enhancing sales (Mayhew,
1861). In addition, Bhowmik & Saha (2019) define a Street Vending Theories
street vendor as a person who sells goods to the
community at large although they would not be without a Street vending is guided by four theories derived from the
permanent stationary structure from which to sell and this informal sector theories which are dualist, structuralist,
is why they occupy space on the pavements or other legalist and voluntarism.
public spaces or can be mobile in the sense that they can

60
Dualist Theory because large capitalistic firms wishes to hack down
input and labour costs so as to increase elasticity,
Dualist theory refers to the informal sector of the amplify their competitiveness and protect their profits in
economy as it comprises of marginal activities such as line with the increased state regulations and global
street vending that are distinct and not related to the conditions thus all this measures leading to street
formal sector but provide income for the poor and are vending (Saha, 2009).
safety net in times of crisis hence, its significance to the In addition, the forces of global integration also put
economy (Tokman, 1978; ILO, 2013). Consequently, downward pressure on salaries, deregulated, liberalized
dualist concept suggests that the persistence of street and privatized, resulting in the decrease of incomes,
vending is as a result of a faster rate of urbanization and social services and other benefits hence leaving workers
lack of formal job opportunities that are available without any option but to create their own jobs informally
especially to young people thus slowing the rate of such as street vending in order to survive (Rakowski,
economic development (Moser, 1978; Tokman, 1978; 1994; Kirshner, 2010). According to Portes &
Wahnschafft 1982). In this case, the economy is Sassenkoob (1987) and Rakowski (1994), the informal
considered as being dual because it consists of sector is heterogeneous in nature because it involves
traditional and modern sectors which Moser (1978) and activities such as direct subsistence, small scale
Ndhlovu (2011) suggested that the dualist philosophy production, subcontracting to semi secret enterprises and
regards these two sectors that is the formal and informal home workers (Teltscher, 1994). Accordingly, the
as having almost next to none links with each other. informal sector is flexible and can be easily exploited
As a matter of fact, in theory these two represents two however just like the dualist, this theory does not work in
parallel economic sectors and cannot operate in union a developed economy where formality is the order of the
because the informal economy is characterised by easy day and short cuts are not encouraged.
entry by new enterprises, dependence on local
resources, small scale operations, family owned, free-for- Legalist Theory
all competitive markets, unregistered, untaxed, being
outside the modern economy and not formalised, labour From the Legalists point of view, the informal sector
intensive technology and workers acquired skills outside comprise of „plucky‟ small entrepreneurs who choose to
the formal school system resulting in street vending operate informally such as street vendors plus they avoid
(Tokman, 1978; Papola, 1980; Wahnschafft, 1982; the cost, time and effort to formally register so as to
Teltscher, 1994). Whilst, the formal sector is properly convert their assets into legally recognised
characterised by elevated barriers of entry, everyday business (Ndhlovu, 2011). Hence, De Soto (1989) and
dependence on imported resources, organised Maiti & Sen (2010) argue that informality such as street
corporations, and they operate mainly at larger scales as vending is a direct result of bureaucratic barriers that are
they are capital intensive (Ndhlovu, 2011) and is based characterised by unbendable rules and regulations and
on formally acquired skills and tariffs, quotas and to make matters worse, the terms and conditions for
licenses are used to protect their markets (Timothy & opening a business formally are so tedious (Maiti & Sen,
Wall (1997). In short, dualist notion tries to justify the 2010).
existence of street vending but in vain because there is Consequently, street vending is popular in less
no relationship between the two as there is no way a developed countries because these countries for some
country can run an informal economy and a formal reasons make traders‟ lives difficult by imposing strict
economy at the same time. rules and regulations, heavy taxes which are time and
effort consuming resulting in traders preferring to operate
Structuralist Theory informally as street vendors (De Soto, 1989; Bernade,
2002; Chen, 2007; Ndhlovu, 2011). In fact, street vending
The Structuralist philosophy also known as the black according to De Soto (1989) and Maiti & Sen (2010) is
market theory or the underground theory or the world part of the informal economy because it is characterised
systems theory or Portes theory (Rakowski,1994) by unregistered and unregulated small scale activities
suggests that informal economy is a subordinated that create jobs and income for the urban poor (Chen,
economic unit (small enterprises) and workers serve to 2007).
reduce input and labour costs thereby increasing the
competitiveness of large capitalist firms (Ndhlovu, 2011). Voluntarism Theory
Thus, Moser, Castells and Portes between 1970 and
1980 brought forward the structuralist school which Voluntarist philosophers argue that the informal sector
focuses on the analysis of the modes of production within forms unjust competition for the formal sector because
the capitalist system and subordinates that occur within it they circumvent formal regulations, taxes and other
(Moser, 1978; Rakowski 1994; Saha, 2009). For production costs (Morales & Cross, 2007; Ndhlovu,
instance, in the informal sector small firms are 2011). In fact, street vending find spaces with high
subordinated and are dependent to the formal sector movement of human and vehicles as conducive as they
(Teltscher, 1994), who have the means of production, offer easy access to customers, especially in areas
producing for the market and in this case the big where street markets are discouraged or repressed as
capitalist producers who are the owners of production street vendors tend to enjoy invading these spaces
(Moser, 1978; Teltscher, 1994) and pushed into the illegally as is the case with Harare Metropolitan (Morales
informal sector where there is no sense of security & Cross, 2007; Ndhlovu, 2011). Henceforth, there is
61
need for trade-offs among urban cleanliness, the rich‟s The Environment Theory
need for urban space and beautiful city space and the
formal traders‟ business interests which are opposed to Basi (2014) suggest that for any given retailer to survive,
the poor vendors‟ need to earn a living. Thus, city re- the retailer should evolve according to environmental
planning should be put at the centre of achieving healthy needs or else might be pushed out of business.
trade-offs and it should consider retailing as the main Consequently, the factors that affect the survival of
formal activity in the CBD (Morales & Cross, 2007; retailers consist of consumers, financial system,
Ndhlovu, 2011). expertise, society, culture, legal framework and
competitors as noted by Blizzard (1976) and Brown
What is retailing? (1978). Hence, a practical change is in technology as the
evolution in the sector will leave retail transactions a click
It is suggested by Reardon et al (2003) that the word away (Basi et al, 2014). Additionally, environment model
„Retail‟ is derived from French word which means “to cut is inclusive of external and internal factors that influence
again” and in the trade world, this refers to one who cuts the changes that take place in retailing and the model
off big portions of merchandise into smaller portions of hypothesises that any retailing organisation should
goods. Whilst, Berman & Evans (2001) and Nedbard evolve according to market needs as failure to evolve
(2011) suggest that retailing is the final delivery of the regrettably results in the organisation being pushed out
product to the final consumer personally however, the of the business as noted by Basi et al (2014) and
process is completed by several intermediaries that Munyoro et al (2017).
enable the transfer of goods produced from the producer
to the retailer. The common assumption here is that The Wheel of Retailing Theory
retailing only sells goods in stores but however, retailing
also refers to the sale of services like those offered in a As suggested by McNair (1957), the wheel of retailing
restaurant, parlour or by car rental agencies (Munyoro et stands out as an ideal theory that elucidates the retailing
al, 2017). evolution and is based on two main strategic features of
Consequently, a retailer is an agent, agency, the retailing industry (Wu et al, 2007). Firstly, there is
company or organisation which is instrumental in ease of entry in this market despite the state set laws on
reaching the goods, merchandise or services to the the establishment of businesses (Pingjun et al, 2006) and
ultimate consumer or are involved in facilitating the there is a profitable originality that can be quickly imitated
passage of goods, merchandise or services to the by competitors (Das-Nair & Dube, 2015; Munyoro et al,
ultimate consumer and that the selling should not 2017). Secondly, differentiation options of the retail
necessarily take place through a store but can be done format are very limited as they rely on the product
through email, internet, door-to-door visits or any channel variety, the pricing levels, and the outlet site as well as
that can be used to connect with the consumer (Berman design (Wu et al, 2007; Munyoro et al, 2017). In this
& Evans, 2001; Munyoro et al, 2017). Furthermore, case, it is stated that the hypothesis argues that new
retailers perform specific activities such as anticipating retailers typically enter the market as low-status, low
customer wants, developing assortments of products, margin and low price operators (McNair, 1957) but slowly
acquiring market information and financing (Berman & these retailers attain more highly structured
Evans, 2001). That said, in this study retailing is referred establishments with improved investments and high
to as a process in which merchandise is procured from operating costs before they finally mature as high cost
producers and is transported, warehoused and finally establishments (Hollander, 1960; Das-Nair & Dube,
sold to the final consumers. It is worth noting that 2015).
retailing industry is always evolving and thus should Thus, it is worth noting that a wheel of retailing is one
quickly adjust and modify its retailing models, of the most recognised theories in the world regarding
approaches and processes to satisfy the needs of its institutional changes in retailing and thus, the theory
ultimate customers profitably (Price Waterhouse states that in the retailing industry, changes takes place
Coopers, 2007; Munyoro et al, 2018). In short, retailing in a cyclical manner (Munyoro et al, 2017) and those
has several theories as discussed below. retailing establishments undergo evolutionary life cycles
that revolutionalize them (Hollander et al, 1960). In
The Theories/ Models of Retailing addition, retailers attempts to capture bigger market
share and increase brand awareness as they enter with
As noted by Munyoro et al (2017) there are philosophies low prices and then progressively work their way up to
which explain how different retail setups arise and these raise their prices, image and profits (Kotler et al, 2009;
philosophies give rise to modelling of a preferred retailing Munyoro et al, 2018), despite, the stages being not
behaviour. Thus, a business model is a well specified applicable to many business contexts, the retailing
system of interdependent structures, activities, and hypothesis still works in many countries as argued by
processes that serves as a firm‟s organising logic for Pingjun et al (2006) and Munyoro et al (2018). It is worth
value creation (for its customers) and value appropriation noting that the next section discusses the types of
(for itself and its partners) (Idachaba et al, 1985; Sorescu retailing available in Zimbabwe and beyond as this is
et al, 2011). In other words, the retailing business model crucial to this study.
explains how to create value for customers and how to
gain appropriate value from the market (Idachaba et al,
1985; Sorescu et al, 2011) as discussed below:
62
Types of Retailing is part of E-Commerce and is influencing shopping
patterns of today‟s customers as well as brining major
There are several types of retailing and some of them are revolution in retail marketing. Consequently, Reardon &
discussed below. Berdegue (2006) describe this as the “supermarket
revolution” even though this mode of retailing has got its
Store Retailing pitfalls but it is significant to agro-based retailing as agro
based retailers such as Farm & City benefit immensely
Department store is the best form of store retailing that is from the use of ICT infrastructure now available in both
popularly used to attract a number of walk in customers urban and rural Zimbabwe as argued by Barwise et al
(Minh, 2016). The other types of store retailing includes (2002) and Munyoro et al (2018).
speciality store, supermarket, convenience store,
catalogue showroom, drugstore, superstore, discount Corporate Retailing
store, extreme value store (Fernie et al, 2013; Basil et al,
2014). Different competitive and pricing strategies are Corporate retailing includes retail organisations such as
adopted by different store retailers (Competition corporate chain store franchises, retailer and consumer
Commission, 2008; Deloitte, 2014). co-operatives and merchandising conglomerates (Kohli &
Bhagwati, 2011; Fernie et al, 2013). There are a number
Non Store Retailing of advantages that these companies can achieve jointly,
such as economies of scale, better and qualified
It is evident from the name itself, that when the selling of employees and wider brand recognition (Guy &
merchandise takes place outside the convectional shops Bennison, 2001). Therefore, corporate retailers can be
or stores, it is termed as non-store retailing (Basil et al, further defined as publicly trading companies and
2014; Minh, 2016) and it is classified under the following privately owned companies (Maclure, 1999; Dawson,
headings: 2001; Kohli & Bhagwati, 2011), and although they can be
relatively small in number, corporate retailers can
Direct Marketing command the largest share of the consumer market for
example TM, OK and PnP (Competition Commission,
In this process direct channels are employed by the 2008).
company to reach and deliver products to the customers
and it includes direct mail marketing, catalogue Research Methodology
marketing, telemarketing, online shopping (Steenkamp,
1999; Kotler & Armstrong, 2004; Basil et al, 2014). Triangulation or pragmatism research philosophy
Additionally, direct marketing is a retail channel in which (Hesse-Biber, 2011) was used in this study to assist the
salespeople interact with customers face to face in a researcher‟s total understanding of the research problem
convenient location even though this high level of and this research philosophy is also known as a
personalized information includes extensive deconstructive paradigm that advocates for the use of
demonstrations and it is costly. mixed methods in the research (Cresswell, 2003;
Saunders et al, 2009). Additionally, the adoption of
Automatic Vending pragmatism was also motivated by its multi-purpose
nature, which allowed the addressing of objectives and
Vending machines are primarily found in offices, questions that do not sit comfortably within purely
factories, gasoline stations, large retail stores and qualitative or quantitative designs and methodologies
restaurants which offer a variety of products including (Ihuah & Eaton, 2013). Thus, the combination of different
impulse goods such as coffee, candy, sweets, approaches is good and effective because it improves
newspapers and soft drinks (Levy et al, 2014; Basil et al, the quality of the study through the combination of their
2014; Minh, 2016) and thus vending machines are respective complementary strengths and weaknesses as
placed at a convenient and high traffic locations. argued by Saunders et al (2009). A case study was also
adopted in this study because it serves money, time and
Buying Service is quick and easy to use since it deals with giving out a
snapshot as was the case with Harare Metropolitan
The retail organisation serves a number of clients population (Sedgwick, 2014; Hemed, 2015; Omair, 2015;
collectively such as employees of an organisation who Zheng et al, 2015; Munyoro et al, 2016). Thus, a minute
are authorised to purchase goods from specific retailers geographical area or a very small number of people are
that have been contracted to give discount in exchange selected in a case study research design as the target
for membership (Deloitte, 2014). population in order to save time and financial resources
especially at the time resources are scarce in Zimbabwe
E-Retailing and there are no research funds in all universities
(Scotland, 2012; Yin, 2014; Lysons & Farrington, 2015;
As noted by Munyoro et al (2018) e-retailing refers to Munyoro et al, 2016). Consequently, the population of
using the internet to sell retail goods and services. E- this study was made up of mainly street vendors, law
retailing according to Gupta & Hooda (2011) is also enforcement agencies, government officials, Harare City
known as Internet retailing, Retail Ecommerce, Online Council officials, retailers and the public (Vendors
Retailing, E retailing and is not a stand-alone word but it Initiative for Social Transformation; Munyoro et al, 2016).
63
Hence, the use of 200 respondents was justified to that at all times under all circumstances they would
ensure exactitude of results (Al-Habil, 2011). Additionally, report the truth and would never present the information
purposive sampling technique was considered due to in a biased manner (Saunders et al, 2009; Mayo &
limited resources (Patton, 2002; Sedgwick, 2014; Onwuegbuzie, 2014; Munyoro, 2014).
Hemed, 2015; Omair, 2015; Zheng et al, 2015; Munyoro
et al, 2016). Thus, a two-stage cluster sampling Data Analysis and Presentation
procedure was done to ensure that the sample was a
proper representation of the population and thus, the first The data was analysed quantitatively and qualitatively
stage entailed clustering of locations and then the using the appropriate techniques such as qui-square and
subsequent stage including drawing an expedient sample qualitative data analysis among others. These methods
from equidistant points within the Harare Metropolitan facilitated an easy evaluation and understanding of the
(Saunders et al, 2009). In this study, primary and information that was presented (Few, 2004). Thus,
secondary data was used and this was achieved through qualitative data was analyzed using Qualitative Data
the use of questionnaires, focus groups and databases Analysis (QDA), in which the data collected using
(Mathers, 2007; Shukla, 2008; Krosnick and Presser, questionnaires and group interviews was transformed
2009; Saunders, 2012; Abawi, 2013; Scandura & into some form of explanation of the respondents‟ views
Williams, 2013; Munyoro et al, 2016) and the with regards to the impact of street vending on the
questionnaire was divided into two sections; one to fill in retailing sector in Zimbabwe and beyond (Seidel, 1998;
the required space and the other to tick where necessary Davidson et al, 2011; ; Munyoro, 2014; Munyoro, et
on a likert scale ranging which vacillated from a strongly 2016). Therefore, both the labelling and coding of the
agree (SA) to strongly disagree (SD) point of view thematic areas assisted the researchers in speedily
(Mathers, 2007; Munyoro, 2014; Kothari, 2014). Thus, retrieving all the texts that were being examined
the advantages of this type of a questionnaire, is that it (Plachkova & Boychev, 2012; Munyoro, 2014). Thus,
gathers a lot of information whilst saving time and through the Seidel‟s (1998) model, the researchers
retaining the privacy of the participants (Krosnick & separated the model into three main interlinked and
Presser, 2009; Saunders, 2012; Munyoro, 2014). The cyclical parts, which are Noticing, Collecting and Thinking
questionnaires were administered and collected by the (Plachkova & Boychev, 2012; Munyoro, 2014).
researcher because vendors have no static location and Furthermore, the IBM Statistical Package for Social
could not be found in the same location twice which then Sciences (SPSS) was used and findings were presented
made life very difficult for the researchers to reclaim the using tables and graphs from the SPSS software. Thus,
questionnaires when they were left with the participants inferences, deductions and conclusions were reached
and the questionnaire mainly comprised of short and from the findings.
structured questions that gave the researcher the
opportunity to gather information speedily as the Results and Discussions
respondents were on the guard of the threat of security
enforcement agencies (Munyoro, 2014). In this study, In this study, 200 respondents were selected comprising
focus groups were used and involved four to eight and of 100 vendors, 40 Retailers, 20 Zimbabwe Republic
even twelve people (Gill & Johnson, 2002; Carson et al, Police representatives, 20 Local Government
2001; Munyoro, 2014). It is worth noting that the representatives and 20 Harare City Council
conducting of research was done by experts (Polit & representatives. The response was 100 percent a way
Hungler, 1993) who recognized and protected the rights over the 50% tolerable rate for any study and particularly
of human subjects that were involved in this study qualitative (Mugenda & Mugenda, 2003) whilst, Saunders
(Carson et al, 2001) as well as rendering the rights to et al (2009) is of the view that a response rate between
self-determination, anonymity, confidentiality as well as 50%-90% is acceptable for questionnaire responses.
informed consent and that the participation was voluntary Accordingly, the findings from this study are also
(Saunders & Lewis, 2007). In addition, the researchers supported by Akuegwu & Nwiue (2016), who state that
followed the high standard research ethos such as men have entrepreneurial initiatives and tendencies in
exercising integrity and honesty whilst dealing with the Africa than women due to cultural prejudice.
targeted participants and the researchers made certain

Gender

Table 1: Gender distribution

Cumulative
Frequency Percent Valid Percent Percent
Valid Male 120 59.2 59.2 59.2
Female 80 40.8 40.8 100.0
Total 200 100.0 100.0

64
Figure 1: Gender distribution of respondents

The distribution of respondents as shown in Table 1 usually round them up and fine them. Figure 1 represents
above by gender was 120 males (59.2%) whilst, 80 were gender distribution of respondents in the study.
females (40.8%). Most women were scared to take part
in the study for fear of victimisation by the police who
Marital Status

Figure 2: Marital status distribution of respondents

The figure above (Figure 2) shows the marital status ratio same results and which show that the 12 percent
of the respondents was as follows: 46 percent of the represents young single ladies. Consequently, the study
respondents are divorced, whilst 24 percent represented shows that the majority of the respondents are living
widows, then 19 percent were married and 12 percent below poverty datum line and that means most people
were singles. This is not surprising given that Munyoro et are relying on informal sector especially street vending
al (2016) in his study of women cross borders found the and especially those divorced and widowed.

65
Age

Figure 3: Age distribution of respondents

The diagram above (Figure 3) shows that 13.5% of the 45-54 years of age. Consequently, these results without
respondents are less than 25 years old, whilst 43% of the a doubt show that the age groups of 25- 44 is the most
respondents represent between 25-34 years of age. dominant and popular age group in the informal sector as
Additionally, 27 percent of the age groups were between noted by Munyoro et al (2016) who also did a study on
35-44 years old, whilst 16 % were in the age groups of women cross borders.

Level of Education

Figure 4: Level of education of respondents

The diagram (Figure 4) above shows that most of the that 36.5% of the total respondents have degrees even
respondents are highly educated as many of them have though they are not working, whilst 42.5% of the
college diplomas and certificates and university degrees respondents have „O‟ and „A‟ level qualification. In
but cannot find jobs, hence their involvement in informal addition, 5% of the respondents have primary school
sector such as street vending especially the ages education or Zimbabwe Junior Certificates, whilst 16 %
between 25 and 34 as noted by Munyoro et al (2016) in have diplomas. At least the positive thing with this study
his previous study. Thus, in short the study findings show is that Zimbabwe has highly educated young people who

2
can be good entrepreneurs and capable of promoting (2019).
entrepreneurial culture as highlighted by Bharucha

Income per Week

Figure 5: Income per week of respondents

The diagram (Figure 5) above shows that the majority of most of the respondents are either divorced or widowed,
the respondents are living below poverty datum line and whilst 12 percent represents graduates from colleges and
means most people are relying on informal sector universities who are unemployed noted by Munyoro et al
especially street vending. This is not surprising because (2016) in his previous study.

Experience

Figure 6: Work Experience of respondents

67
The diagram above (Figure 4) shows that the majority of retired mainly due to poor economic performance and
the respondents in this study have vast work experience unfortunately found themselves unemployed as noted by
because they worked for several years in the industry Munyoro et al (2018) in his study.
and civil service before they were either retrenched or

Factor Analysis and Cronbach’s Alpha

Coefficient

Table 2: Coefficient

Factor
Factor Loads
Street vending is a means of survival that ensures better livelihood 0.815
There is better access to customers when selling good in street 0.878
Moving vendors to designated sites would reduce their sales and profits 0.864

Street vending creates employment 0.785


Does street vending affects profitability of retail shops 0.675
Does street vending threatens survival of retail supermarkets 0.750
Street vending contributes positively to national of Zimbabwe 0.577
Street vending exists because of lack of employment opportunities 0.778
Street vending is a temporary survival measure that will disappear if the economy is revived 0.728
Given a chance would you want to be employed in the formal sector 0.904
One makes more in the as vendor that working in the formal sector 0.885
People moving from the rural areas to the city has caused an increase in street vending 0.791

Correlation Analysis

Regression Analysis

Table 3: Regression analysis


Regression Analysis

Unstandardized Coefficients Standardized Coefficients

B Std. Error Beta T Sig.

Constant) 0.158 0.659 0.239 0.813


Street vending 1.277 0.153 0.896 8.334 0.000
Retailers 0.308 0.135 0.206 2.292 0.03
Dependent Variable

R Square 0.79 F Statistic 33.822


Adjusted R Square 0.766 Sig. 0.0000

In short the results show that street vending is a major has affected retailers‟ performance as a result of street
threat to retail shops in Harare as indicated by (F-statistic vending activities and this is discussed in detail above.
= 33.822, p<.000) and these two factors accounted for
about 76.6% of the observed variation in retail shops. Conclusions and Implications
The findings further showed that the relationship between
street vending and retail shops was statistically Major Findings
significant (Beta=.896, p<.01) and that the relationship
between working environment and customer retention Street Vending has a Negative Impact on the
was significant (Beta=.206, p>.05). Thus, the findings Retailing Sector in Zimbabwe
show that street vending has a significant effect on
retailers (beta = .206, p<.05), implying that street vending The study shows that street vending has negatively
affected retail organizations by decreasing their market
1
share resulting in poor performance by the sector due to Restrictive and Ambiguous Legislation
the fact that street vendors are smuggling their goods
from outside the country and also buying their local The study revealed that whilst the individuals engage in
goods by illegal means making them very cheap the practice of street vending for various reasons, it was
compared to retailers (Truong, 2017; Nsakanya & Phiri, noted that many of the street vendors were not aware of
2018). Additionally, street vendors are also affecting the laws regarding vending or the parameters that guide
retail industry by bringing cheap and inferior goods from their operations (Truong, 2017; Nsakanya & Phiri, 2018)
foreign countries especially China and India (Gomez, and those that knew the legal requirements of street
2008; Ndhlovu, 2011; Nsakanya & Phiri, 2018) and this vending did not fully comprehend the city council by laws
has resulted in consumers preferring to buy cheap goods (Ndhlovu, 2011; Nsakanya & Phiri, 2018). Additionally,
from vendors than retailers (Ndhlovu, 2011; Nsakanya & the study revealed that there are gaps in the by-laws in
Phiri, 2018). This then has resulted in sales volumes and terms of the legal framework on street vending, which
profits in the retailing sector as the retailers are not able largely regrettably are still reflective of colonial repression
to match informal traders‟ prices (Gomez, 2008; and suppressing rather than promoting the economic
Nsakanya & Phiri, 2018). In addition, retailers development of local authorities (Ndhlovu, 2011;
complained about their tax obligations, rental and labour Nsakanya & Phiri, 2018). In short, restrictive and
costs, among other operating overheads which was ambiguous legislation results in the creation of legalists
making it difficult for them to compete with near zero cost who sadly choose to operate informally (Nsakanya &
base of street vendors (Ndhlovu, 2011; Nsakanya & Phiri, 2018). For example, street vendors choose to
Phiri, 2018) who even allow customers to negotiate for operate off handedly in order to avoid the cost, time and
lower prices (Ndhlovu, 2011; Truong, 2017). effort of formal registration and who need property rights
Consequently, this has resulted in some well known retail to convert their assets into legally recognized assets
chains such as Lucky Seven and Savemore among (Ndhlovu, 2011; Nsakanya & Phiri, 2018). Hence, De
others closing down resulting in thousands of people Soto (1989) and Maiti & Sen (2010) argue that informality
losing their jobs, local authorities and government loosing such as street vending is a consequence of bureaucratic
revenue (Gomez, 2008; Munyoro et al, 2018). What it barriers because the laws are intransigent and the
means is that the net value of street vending is negative regulations, terms and conditions for operating a
and should be discouraged by removing street vendors business in the formal sector are so tedious (Nsakanya &
from the streets (Truong, 2017; Nsakanya & Phiri, 2018). Phiri, 2018), such that it becomes an additional burden to
In short, there is no way a country can run an informal street vendors forcing them to circumvent formal rules
economy and a formal economy at the same time and regulations by operating in the informal sector
because it does not work contrary to what dualist theory (Ndhlovu, 2011; Nsakanya & Phiri, 2018). Hence, street
suggests (Timothy & Wall, 1997; Morales & Cross, 2007; vending is popular in less developed economies because
Ndhlovu, 2011). these countries for some reasons known to them make
traders‟ lives difficult by imposing strict rules and
Congestion of the Central Business District regulations, heavy taxes, time consuming and effort
involved in complying with formal state procedures
Street vending mostly takes place on the street and it is resulting in traders prefer to operate informally (De Soto,
evidenced usually by increased dirt, human and vehicular 1989; Bernade, 2002; Chen, 2007; Ndhlovu, 2011).
congestion in the city centre (Ndhlovu, 2011; Truong,
2017) and this is a problem that is being faced by several Alternative Employment Option
local authorities in Zimbabwe and beyond, as they
struggle to clear the rubbish and dirt every day that The study revealed that unemployment is another
remains when the vendors leave the street after selling challenge being faced by the Zimbabwean government
their wares (Ndhlovu, 2011; Nsakanya & Phiri, 2018). In and local authorities (Munyoro et al, 2017) and given the
Harare Metropolitan for example, the movement of current economic situation street vending then is seen as
vehicles has become unpleasant as roads are obstructed an employment alternative in the wake of scarce number
with human traffic who cannot walk on pavements as of formal jobs (Bromley, 2000; Ndhlovu, 2011; Nsakanya
they are littered with street vendor‟s merchandises & Phiri, 2018). In short, as the government struggles to
(Ndhlovu, 2011; Nsakanya & Phiri, 2018). Consequently, beat down unemployment, the evidence from the study
this also gives a negative impression to tourists and city show that more and more people are seeing street
residents as the streets become more like war zones vending as their only hope to escape poverty (Nana,
(Ndhlovu, 2011; Truong, 2017). It is unfortunate that 2009; Munyoro et al, 2016; Nsakanya & Phiri, 2018) and
although the local authorities and law enforcement this study also shows that most of the respondents who
authorities are trying to bring back “order, safety and have diplomas or university degrees are not formally
security” in the local authorities they have not been employed even though they stated in the study that they
successful due to political intrusion by political parties would prefer formal employment if it was available
and other influential civil servants (Smith, 1996; Belina & (Munyoro et al, 2016; Nsakanya & Phiri, 2018). In this
Helms, 2003; Ndhlovu, 2011; Nsakanya & Phiri, 2018). regard, very recent studies suggest that most of the
street vendors in Harare Metropolitan were previously
engaged in formal employment in the private and public
sector but are now street vendors due to closing down of
industries as a result of current economic meltdown
69
(Global Policy Network, 2001; Jonathan, 2006; Molefe, citizens especially the street vendors (Chang, 2008;
2011; Jongh, 2013). This was further highlighted by Munyoro et al, 2016) and the government should
Abhayray (2013), who made similar accession that the encourage down-up policies concerning street vending
majority of hawkers enter the business world in an effort by consulting its citizens and incorporating their needs
to escape poverty and unemployment. Consequently, it (Chang, 2008; Zhou, 2012; Munyoro et al, 2016).
means that the majority of street vendors will always Consequently, what it means is that there should be a
remain survivalists with limited business growth potential synergetic connection between public policies and
because it is an illegal business in Zimbabwe and thus government institutions (Torjman, 2005; Chang, 2008;
get little support and sometimes outright opposition from Zhou, 2012). Therefore, the study recommends that the
the government of Zimbabwe (Ayeh et al, 2007). Yet, job government put in place a street vending policy in order
creation and growth have been very disappointingly low to avoid confusion.
in Zimbabwe and not sufficient to absorb the mass of
unemployed individuals (Luebker, 2009). For example, Moving of Vendors to Designated Vending Zones
the unemployment in Zimbabwe is at 90 percent, and this
is as a result of the worsening economic crisis in Although city planning is the role of the local authorities,
Zimbabwean history which has forced many companies the study recommends that the local authorities adopt a
to close (Tibaijuka, 2005). In addition, there was also an consultative approach with vendors, Zimbabwean
exodus of people migrating from rural to urban areas in government, businesses and other stakeholders as far as
search of healthier living environments which resulted to allocating and choosing vending zones are concerned
the growth of unlawful residential settlements such as (Ndhlovu, 2011; Nsakanya & Phiri, 2018) and this is
Mbudzi and Epworth areas among others putting expected to ensure „buy in of stakeholders‟, especially
pressure on an already growing urban population that of vendors, civic organizations, such as churches,
(Mutizwa, 2010; Hove, 2013; Munyoro et al, 2017). This human rights, nongovernmental organizations and
then has resulted in many people seeking the easy and political parties just to name a few (Nsakanya & Phiri,
available option of surviving as formal employment 2018). Additionally, it was revealed in this study that
opportunities still remain low and remote (Nsakanya & vendors are open to moving to designated trading zones
Phiri, 2018) and turning to street vending is considered to that are conducive to business and were not interested in
be a valuable „safety net‟ for unemployed youth, violating by laws of the local authorities such as Harare
redundant civil servants and former farmer workers Metropolitan (Ndhlovu, 2011; Nsakanya & Phiri, 2018).
(Mbiba & Ndubiwa, 2008; Sharit, 2012; Hove, 2013; Although most vendors suggested that there was need
Munyoro et al, 2018). for them to be in areas with high human and vehicular
traffic to ensure high profits, unfortunately this idea was
Inadequate Market Infrastructure shot down by the retailers, local authorities and the law
enforcement agencies as they felt that allowing street
The study shows that most of areas of Harare vendors to sell from the streets before and after normal
Metropolitan do not have appropriate infrastructure to business trading hours was tandem mount to chaos as
help stop street vending problems making it very difficult vendors will cause traffic jam and impact negatively on
to implement street vending removal in local authorities tourism among other issues even (Ndhlovu, 2011;
such as Harare Metropolitan in Zimbabwe as was also Holden et al, 2011; Truong et al, 2014; Nsakanya & Phiri,
the case with Kalulushi district in Zambia (Ndhlovu, 2011; 2018).
Nsakanya & Phiri, 2018). Additionally, the respondents
revealed that there is a low number of market places in Lack of Markets Infrastructure
Harare Metropolitan which are designed for street
vending contributing to poor implementation of street The study recommends that the government and local
vending as was the case with Kalulushi District (Narumol, authorities put modern infrastructures that would make
2006; Ndhlovu, 2011; Nsakanya & Phiri, 2018). people want to come and buy from these designated
areas through easy access and parking (Ndhlovu, 2011:
Practical Implications for Policies and Practice Nsakanya & Phiri, 2018). In African metropolitans such
as Johannesburg, Harare, Maputo and Lusaka just to
Street Vending’s Future Plans name a few, hawkers, commonly referred to as vendors
are seen everywhere selling a wide range of goods such
In this study, most of the respondents are of the opinion as fish, fruits, vegetables, juices, tea, snacks, cooking oil,
that the government has no clear plan in promoting or soap, bread, clothes and books which are laid on the
removing street vending and this is not surprising given ground in the streets especially in the central business
that greediness and power hunger has crept into policy district resulting in communicable diseases such typhoid,
makers in Zimbabwe making the policies highly dysentery and cholera (Ndhlovu, 2011; MG Africa, 2015;
unpredictable, top-down and short-range in focus as Nsakanya & Phiri, 2018). Hence, the need for the
suggested by Munyoro et al (2016) and all this is Zimbabwean government and local authorities to put in
unfolding in front of the media as noted by Chang (2008) place structures that will help to curb street vending
and Munyoro et al (2016). In short, the government (Bhowmik, 2005). Like in Mexico, the Mexican
should take a clear position on street vending to make government decided to take forceful steps against street
life easier for local authorities as the current situation is vending with government officials arguing that street
confusing and this should be communicated to the vending was not fit with the modern image that Mexico
70
City was attempting to project and the same sentiments employment opportunities through employment intensive
were echoed by local authorities and law enforcement growth and formalizing street vending enterprises
agencies in Harare Metropolitan (Torres, 1990; Cross, through a context-specific mix of incentives as suggested
1995). In fact, Mexico City carried out a robust market by Cross (1998) and Chen (2009).
construction program which led to the building of closed-
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