OK Zimbabwe Limited, a leading retail group in the country, experienced a 32 percent decline in volumes during the quarter ending December 31, 2023, compared to the previous year, and a 28 percent decline for the nine months ending December 2023.<\/p>\n
Mrs. Margaret Munyuru, the group company secretary, said in a trading update for the period under review, that the group continues to implement volume growth strategies to stabilize business performance.<\/p>\n
She, however, said \u201cStringent supplier payment terms on Zimbabwean dollar-denominated purchases, as well as credit limitations on foreign currency-denominated purchases, affected stock availability and pricing dynamics during the quarter\u201d.<\/p>\n
Group revenue for the quarter reached $568 billion, marking a 50 percent increase in inflation-adjusted terms compared to the previous year. In historical cost terms, group revenue grew by 535 percent to $490.5 billion.<\/p>\n
For the nine months ending in December 2023, group revenue increased by 57 percent to $1.6 trillion in inflation-adjusted terms and by 501 percent to $1 trillion in historical cost terms.<\/p>\n
\u201cThe business has adopted a structured cost containment program to align overhead costs with business performance,\u201d Mrs. Munyuru said.<\/p>\n
She highlighted that the period under review was characterized by a challenging operating environment due to the continued depreciation of the local currency against foreign currencies.<\/p>\n
She noted that this depreciation led to persistent price changes that negatively impacted consumer demand and supply dynamics.<\/p>\n
\u201cCompliance with laws and regulations governing currency also posed challenges for the group, resulting in high in-store prices and a loss of competitiveness, especially against unregulated markets,\u201d Mrs. Munyuru said.<\/p>\n
Despite the challenges, OK Zimbabwe said it will continue to engage amicably with regulatory authorities to enhance macroeconomic stability and support the sustainable growth of formal retail businesses.<\/p>\n
Mrs. Munyuru said the company remains optimistic about its prospects and recognizes the need to adapt to the changing operating environment.<\/p>\n
\u201cThe business is focusing on delivering value to its customers by enhancing customer experience, executing fair pricing, improving market presence, and optimizing operational efficiencies for long-term sustainability,\u201d she said.-businessweekly<\/p>\n
OK Zimbabwe records declined volumes<\/a><\/p><\/blockquote>\n