Online Reporter
Nelson Gahadza
Meikles Limited says the repeal of Statutory Instrument (SI) 81A through SI 34 of 2025 marks a turning point for formal retail, restoring fair trading conditions and enabling price competitiveness in US dollar terms.
Through SI 34 of 2025, the Government removed penalties for businesses that priced goods and services above the official exchange rate and granted businesses greater pricing flexibility, allowing them to adjust prices based on market conditions.
Acting group chairman Mr Fayaz King, in a statement of financials for the year ended February 28, 2025, said the group’s supermarket segment was well-positioned, with a healthy liquidity profile to capitalise on these improvements.
“Revenue performance during the first quarter of the new financial year demonstrated positive momentum, with foreign currency sales accounting for 32 percent of total supermarket revenues, an improvement from 27 percent recorded in the same period last year,” he said.
He added that unit sales volumes rose by 8 percent, reflecting sustained consumer demand. “Notably, the core grocery category, which represents the bulk of our volume mix, continues to deliver solid unit growth.
“Liquor sales have shown particularly robust expansion, supported by the strong economic activity in smaller stores located in mining towns where local economies are buoyed by mining operations,” said Mr King.
However, during the year under review, group revenue declined by 2 percent to ZiG12,5 billion from the previous year of ZiG12,8 billion in inflation-adjusted terms, while reflecting a 29 percent growth in historical cost terms.
Mr King said revenue for the supermarket segment declined by 2 percent, despite a 1 percent growth in units sold. Resultantly, the supermarket segment contributed 99,6 percent of the group’s revenue and the gross profit margin was 22,69 percent and almost identical to 22,61 percent achieved last year.
“In line with our strategic priorities, the supermarkets segment is actively deploying capital into high-impact areas aimed at maximizing growth and enhancing customer loyalty.
“Targeted investments are being made in high-potential stores in mining towns, liquor category development, and improvements to the supply chain for remote locations,” he said.
Additionally, Mr King said management is rigorously evaluating expansion opportunities arising from market developments.
He said on the properties front, the refurbishment and expansion of assets, particularly in Bulawayo, are nearing completion, and this project will deliver the city’s largest mall of its kind, featuring over 220 retail and food outlets, as well as office spaces.
“We expect these enhancements to significantly drive revenue growth in the properties segment through late 2025 and into 2026.
“The tenant mix will include a combination of smaller businesses, which generate higher rental yields, and key anchor tenants such as TM Pick n Pay and KFC,” he said.
In terms of operational review, the group’s supermarkets segment, trading as TM Pick n Pay, operated under significant strain due to regulatory pricing restrictions and constrained liquidity.
