Ashly DhaniNelson Gahadza
Retailer, OK Zimbabwe Limited, says the stability of pricing during the four months to June 30, 2024, contributed positively to volume recovery, as customers responded favourably to the group’s commitment to fair pricing practices.
The stability that has characterised the domestic economy since the introduction of the new currency, Zimbabwe Gold (ZiG), in April has had a positive impact on inflation, the exchange rate, and general investor sentiment.
In the grocery retail sector, prices of basic commodities and other consumables have largely remained stable and unchanged since the introduction of the ZiG currency.
Ok Zimbabwe Group company secretary Margaret Munyuru, in a trading update for the quarter under review, said volumes increased by 20,2 percent compared to the same period in the prior year.
“The growth was mainly driven by improvement in the performance of the OK Grand Challenge promotion, which marked the inaugural participation of the group’s OK Mart stores.
“The success of this promotion was further bolstered by the ongoing support from our key partner suppliers, who played a crucial role in its execution. Additionally, the introduction of the new Zimbabwe gold currency (ZWG) brought with it a measure of stability,” she said.
Mrs Munyuru said the domestic economy has remained on a growth trajectory, and the group continued to position itself to seize opportunities from the increased consumer spending.
“While the liquidity challenges impacted trading during the period, the Reserve Bank of Zimbabwe (RBZ) increased ZiG notes and coins in circulation, easing change shortages, and has taken further steps post-quarter to curtail liquidity constraints,” she said.
For the period under review, group revenue increased by 2.2 percent compared to the same period in the prior year.
Munyuru said USD collections, however, dropped significantly from FY2024 last quarter and FY2025 first quarter as most consumers were now using ZiG.
“Despite the significant increase in volumes, sales values increased marginally as a result of the growth in contribution of bulk product sales that carry a lower unit price.
“This resulted in an increase in basket size of 28 percent against a customer count decline of 6.8 percent,” she said.
Ok Zimbabwe commended the fiscal and monetary measures being implemented by the government, and the group remains committed to delivering value to its shareholders.
“The group will focus on executing fair pricing, expanding market presence, and optimizing operational efficiencies while prioritizing customer satisfaction for long-term sustainability,” she said.
However, OK Zimbabwe noted that the shortage of foreign currency in the formal banking sector continued to put pressure on the exchange rate, and some stakeholders began to insist on USD payments for products and services.
Online Reporter