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ZIMBABWE’S largest supermarket chain, OK Zimbabwe Limited, on has reported a 5,1 percent growth in revenue to $123,1million in the first quarter of 2013 compared to the same period last year. Group chief executive officer Mr Willard Zireva told the company’s annual general meeting last Friday that the growth was rather slightly below the aggressive budget which took into account anticipated national Gross Domestic Product (GDP) growth of 5 percent.
“It is generally accepted that the country may actually have experienced zero growth or deflation during the period, but we however see improvement as the year progresses,” he said.
Mr Zireva said the group’s focus was to effectively control shrinkage as well as tighten management of other overheads.
“Profit growth for the quarter in line with sales growth should improve as we go forward with all the initiatives which are in place or being worked on.”
OK Mart growth for the quarter was slightly below the company average mainly affected by lower sales in liquor.
Mr Zireva said management would continue in its efforts to improve the margin through better sourcing.
The group recently signed an agreement with a South Africa-based company, Kawena, to enable Zimbabweans resident in South Africa to purchase goods for family and friends back home.
The partnership hopes to tap into the estimated $500 million per year which Zimbabweans in South Africa remit for family support and other personal projects.
Mr Zireva said the arrangement had very exciting opportunities and also contributed to reduction of the country’s negative trade balance with South Africa.
“We are trying to get into a market which may not have banked and they had potential to add value to the economy,” he said.
He also noted that Kawena’s turnover last year on the Mozambique distributorship was at 400 million rand.
“And there are only about 500 000 Mozambicans in South Africa, compare that to the 1,9 million Zimbabweans in South Africa and you will see there is great potential in that area,” Mr Zireva said.
He said the group had gone into a distributorship arrangement with another blanket manufacturer, Aranda from South Africa and hoped should add value to the company.
Mr Zireva said store refurbishment and other capital expenditure programmes were ongoing with funding from internal resources.
Two new outlets were opened at Wynne Street and Chitungwiza Town Centre.
The company would, however, be moving out of the Rezende Street store at the end of July after it realised it does not make sense to put too much effort in such a small shop, said Mr Zireva. Building work was in progress at the Hwange Store with a target opening by end of September while work was in progress to move to bigger space in Eastlea.
Refurbishment work was planned for Waterfalls, Bindura and Houghton Park while partial work would be done in Gweru and Mutare. – New Ziana
Online Reporter