HARARE – Retail giant OK Zimbabwe has confirmed it is pressing ahead with a debt recovery plan that includes selling some of its supermarket properties in order to raise US$10.5 million to settle obligations. The properties will then be leased back, allowing the company to retain its footprint in key trading locations.
“The leaseback arrangement is necessary to ensure the Group continues to operate in its strategic store locations,” the company said in its latest update.
According to NewZWire, the restructuring comes as part of a broader turnaround strategy that includes strengthening the retailer’s balance sheet and improving operational efficiencies. In addition to the property disposals, OK has secured US$20 million from shareholders to repay debt and restock its shelves.
However, management has admitted that skills shortages remain a significant obstacle to recovery. Years of financial decline drove many experienced employees out of the company and the country in search of better opportunities.
“When the group was in decline, retail skills were lost as trained and experienced personnel left employment for better opportunities. It will therefore be essential to retrain the existing staff to raise levels of customer service and standards of performance,” the company noted.
Market Pressures
OK’s turnaround is unfolding in a highly competitive retail market. Formal retailers such as TM Pick n Pay and Spar continue to battle for market share, while informal tuckshops and street vendors, who trade predominantly in US dollars and often source cheaper imports from South Africa, have eaten into formal sector revenues.
Analysts say formal supermarkets are also under pressure from rising operating costs, intermittent power supply, and volatile exchange rates, all of which have made it difficult to maintain consistent pricing and stock levels. “The reality is that customers now compare supermarket shelves with what’s available on the streets, and often the informal trader wins on both price and convenience,” said one retail analyst.
OK’s decision to sell properties for a leaseback arrangement reflects both its urgent need for liquidity and the difficulty of competing in this market. While the US$20 million injection from shareholders offers breathing room, observers caution that restoring consumer trust and winning back market share will require more than capital restructuring.
“The challenge is not just about restocking stores,” noted NewZWire. “It is about positioning OK Zimbabwe to compete in an economy where informal trade dominates and consumer loyalty has shifted.”
For now, investors and customers alike will be watching closely to see whether Zimbabwe’s oldest listed retailer can reinvent itself in a market where survival increasingly depends on agility, innovation, and customer service.
