Online Reporter
Business Reporter
OK ZIMBABWE chief executive officer Mr Willard Zireva has outlined a recovery plan for the struggling retailer, marking a clear shift from mere rhetoric about planned solutions to the retailer’s problems to action required to build a firm path to recovery.
In a recent interview on Capitalk FM, Mr Zireva explained the recovery plan that focuses on capital raising, debt settlement, supplier reconciliation and operational streamlining while pleading for patience and stakeholder commitment. He emphasised that these were essential for the success of the plan.
Mr Zireva’s calm but resolute demeanour, however, underscored a key message: The company acknowledges its significant challenges and is embarking on a step-by-step journey towards recovery.
The interview was less a declaration of victory and more of a frank and realistic assessment of the journey ahead. His repeated use of the phrase “this is a process” manages expectations and avoids overpromising.
“I must emphasise that the turnaround is a process, not a one-day event,” Mr Zireva said.
“We won’t fix everything overnight, but we are happy with the progress we are making step by step.”
He added: “I’m encouraged by the positive way all stakeholders (authorities, shareholders, suppliers staff and customers) are working with OK Zimbabwe on this.
A return to duty
Mr Zireva’s return to OK, where he previously served as CEO from 2001 to 2017, is framed as a “duty” to a trusted national brand.
During the interview, he provided a picture of the state of the company when he rejoined — a heavy debt burden, poor supply relations and empty shelves that led to a significant loss of consumer trust.
The diagnosis sets a realistic baseline for the challenges ahead, moving past mere operational issues to highlight systemic problems.
OK has been seriously struggling before Mr Zireva’s appointment, facing mounting economic pressures and intense competition from the informal sector.
His return, which saw the departure of then-CEO Mr Maxen Karombo, signalled the board’s intent to leverage his extensive experience in navigating past challenges and positioning the business for long-term growth.
The first key move was a successful rights issue that raised US$20 million in fresh capital.
Analysts say its success is a powerful testament to the confidence major shareholders have in the new direction.
“The full subscription . . . it’s a powerful vote of confidence from shareholders who are placing their faith in the new leadership and the long-term vision for recovery,” said one market analyst.
The money is earmarked to partially settle supplier debts, which were reported to be around US$30 million and strengthen working capital, essential for getting goods back on the shelves.
The positive response to the rights issue suggests the market is cautiously optimistic about the new leadership, placing its faith in a veteran to lead a measured and methodical recovery.
An additional US$10,5 million would be raised through the sale of properties. In yet another vote of confidence, the National Social Security Authority (NSSA), the largest shareholder, has agreed to buy one of its properties worth
US$3,5 million to further support the business.
However, financial analyst Mr Sylvester Mupanduki noted that raising US$20 million through a rights offer does not guarantee a company’s long-term success, noting that it raised a similar amount before — US$15 million from a rights offer and US$5 million from a convertible loan in 2010.
Fifteen years later, the company still faces the same issues.
“The company has been slow to adapt, shown by its delay in suspending dividends when the economy was under pressure from 2020 to 2024,” he said.
“Stopping dividends now, selling idle assets, closing loss-making stores and cutting debt are positive steps.
“The real test is whether management will keep running the business efficiently after the crisis, or slip back to old
habits.”
Mr Zireva’s operational plan extends beyond finance to the fundamental health of the business.
He pointed out that reopening dialogue with suppliers and negotiating new terms was crucial for restoring the flow of stock, a problem that had left shelves “empty or almost empty”.
Assessing store performance and realigning it to specific market segments, along with retraining staff, signals a shift towards efficiency and a more focused business model.
The company’s recent decision to shut five branches, including the “painful” closure of the Food Lover’s Market, highlights the new focus on rationalisation and a return to core retail operations.
Mr Zireva said this was a necessary step to stop the bleeding from the “underperforming assets” and a testament to the management’s desire to make “tough but necessary decisions”.
He acknowledged the pain of seeing a “trusted household name” decline and commitment to “reintroducing community-driven promotions” and investing in customer engagement.
The confirmation of the return of the iconic OK Grand Challenge in 2026 is a strategic masterstroke, leveraging the brand’s heritage to generate optimism and excitement among consumers.
“Dedication fuels this turnaround,” he said, adding: “together we will grow again.”
He made these remarks in an apparent inclusive language meant to unify the company’s internal and external partners towards a common goal.
Cautious optimism
The shelves are beginning to fill up in selected outlets, pointing to the utilisation of the rights issue funds, but it will take time for the company to return to normal trading levels and fully regain customer trust.
While the promised improvements in some outlets are a positive step, the company will need to demonstrate tangible progress in stock availability and service quality to win back customers.
Rebuilding trust in a business is a process, not an event.
“When trust is low, it must be earned back step by step.
Suppliers will take a cautious approach, and it will take time for them to regain full confidence. But, as we move forward, we should see more and more stock on supermarket shelves.
“Normalisation will take time,” Mr Mupanduki said.
“Just a visit to their Fife Avenue store will give you a clear picture of how big their issue is.
“On a good day, only two tills are operating, but normally, there is only one till operator, with just two or three customers walking around.
“In fact, the presence of more security guards than cashiers in that store speaks a lot about how distant a true turnaround still is.
“By contrast, Spar, within the same complex, operates at full capacity, with all tills open and steady customer traffic. The divergence highlights structural weaknesses in the underlying business model.”
The path ahead for the country’s largest retail outlet in terms of floor space is challenging, but the retailer appears to have a clear strategy to regain its strength and rightful place in the market.
The company could leverage its strong household brand name, extensive geographical spread and existing brand loyalty to regain market trust.
Building on a strong foundation of brand recognition and customer loyalty could be a smart strategy to overcome current challenges.
OK’s extensive geographical spread gives the company a significant advantage in reaching customers and re-establishing its market presence.
