HARARE — OK Zimbabwe has provided an update on its turnaround strategy, outlining progress on capital mobilisation, supplier negotiations, and internal restructuring as the retailer works to stabilise operations and rebuild stock levels.
The company set out to raise US$30.5 million to restock and settle debts. While shareholders have already contributed US$20 million, the sale of company-owned properties—intended to raise the remaining US$10.5 million—has “taken longer than expected”. According to the company, two assets are close to being sold, while offers have been received for three more.
On the supply side, the retailer says negotiations remain difficult. Suppliers, who are owed US$24 million, agreed to a partial settlement, but unfavourable trading terms continue to constrain stock availability in a market where informal traders often pay cash upfront. OK stated:
“Trading terms that are in place have not allowed adequate stock build-up to support the required level of activity.”
The company further appealed for cooperation from suppliers during the busy summer trading period, saying:
“We appeal to all our suppliers to work with us during the summer trading season — our success is your success.”
OK Zimbabwe, which has 62 stores, has closed 11 outlets and plans to shut three more. As part of its restructuring, the company has also reduced head office staff and cut operating expenses by 35%, with expectations of a further 15% reduction by December. Meanwhile, Bon Marché Chisipite will relocate to a larger space as its shopping complex undergoes expansion.
