adminthe economy.
The supermarket chain made an after-tax profit of US$3,9 million, 1 900 percent higher than the same period last year on high sales growth. Revenue for the period was up 61 percent to US$185,6 million, OK Zimbabwe said in its half-year financial statement released yesterday.
Earnings per share increased 1,167 percent per share to US0,38c from US0,04c per share made during the previous comparable period.
“All the company’s stores were adequately stocked throughout this period. This combined with effective sales and marketing programmes, generating significant growth.”
Since the adoption of the multi-currency system in 2009, the local retail sector has emerged strongly, with consumer spending returning to some degree of normality after
shoppers mostly relied on the black market for groceries during the hyperinflation era.
Wages and salaries have also been steadily improving while availability of goods saw the general stability of prices. Inflation, which, at last official count reached 231 million percent in July 2008, has since gone down, with 4,2 percent annual rate, reported last month.
However, retailers are still relying on imports on bulk of the goods, as local manufacturing companies are yet to meet local demand. OK said it is importing the bulk of its goods and consumables from South Africa as capacity utilisation for local manufacturers remains depressed.
However, pricing was not affected during the period under review by the movements of the South African rand against the US dollar.
OK operates four store brands – Bon Marche for the high end, OK Express for convenience, its flagship OK Supermarkets and Makro shops which have since been rebranded OK Mart.
Unlike other supermarket chains, OK has continued to focus on refurbishing stores. It spent US$7 million on refurbishment. The store refurbishment programme was done at OK Queensdale, OK Avonlea and Bon Marche Chisipite. This has resulted in increased sales.
The company intends to embark on refurbishment of Bon Marche Avondale, OK Marimba and OK Fife Avenue. Refurbishment of Bon Marche Mount Pleasant has been completed while limited works will be conducted at Bon Marche Borrowdale, OK Mbare and Machipisa. A new Bon Marche store was opened in August at Westgate
Shopping Mall while sales at two OK Mart Stores are improving steadily. The company also intends to open additional new outlet in Harare.
Acquired by Delta Corporation in 1997 and then demerged in 2001 in the unbundling exercise, OK is one of the major retail chains in Zimbabwe. OK executive has been together for many years and were joined by three directors representing the Investec Africa Frontier Private Equity Fund which underwrote its US$20 million recapitalisation.
Online Reporter