OK Zim bullish as key stock suppliers return

Source: OK Zim bullish as key stock suppliers return | The Sunday Mail

Martin Kadzere and Sikhulekelani Moyo

OK ZIMBABWE chief executive Mr Willard Zireva is optimistic about the group’s turnaround prospects, citing several supply lines that have been secured, helping avert some of the planned branch closures.

The supermarket chain is already replenishing shelves.

Key suppliers of various products have recommenced deliveries to branches across the country, providing a vital boost to OK Zimbabwe’s restocking efforts, Mr Zireva told The Sunday Mail Business in an interview on Thursday.

A challenging trading environment marked by growing informal market competition, pricing issues emanating from exchange rate disparities, smuggled cheaper substitutes and internal management issues led to restocking difficulties for OK Zimbabwe.

This resulted in the temporary closure of four branches — one in Chitungwiza at the famous Town Centre; two in Harare’s suburbs of Glen Norah and Kuwadzana; and another along Robson Manyika Avenue in the capital city’s central business district.

The restoration of critical supply lines has allowed the company to halt the planned closure of the Entumbane branch in Bulawayo and the Mbare branch in Harare, which have been under threat due to supply shortfalls.

Major suppliers, including distributors of Olivine brands, Pearlspot, Newpeak, Competitive Brands and Shapers, Traylish Tissue Company, Schweppes, Champions Foods, Lesel Brands, Crystal Candy, Lesaffre, Flycrew, Dairibord, Montana Meats, Vaitive, Exclusive Brands, Willsgrove, Keffalos, Sable Park, Nestle, Gold, Montgomery, Arenel, Irvine’s, Snowmaster, Bulawayo Abattoirs, Value Visions and Proton Bakers, have recommenced deliveries.

“If you go to our branches, you will notice more stocks (on the shelves),” said Mr Zireva.

Having recently returned to the group since his departure seven years ago, Mr Zireva affirmed that restocking efforts will continue and expressed optimism that the group would achieve a swift turnaround, anchored in sustained and new supplier relationships.

Mr Zireva, who retired in 2017, returned as chief executive officer this month, replacing Mr Maxen Karombo, who had taken the position in April 2021.

This reshuffle also saw the return of two other former senior executives — Mr Alex Siyawora as chief financial officer, succeeding Mr Phillimon Mushosho, who joined in July 2021; and Mr Muzvidzwa Chingaira as supply chain director, replacing Mr Knox Mupaya.

Although stock availability has improved, Mr Zireva said daily supplier deliveries make a precise comparison to stock levels prior to his return difficult.

OK will assess the stock levels across branches at the end of this month.

Group company secretary Mrs Margaret Munyuru told the Parliamentary Portfolio Committee on Industry and Commerce, during its tour of the Entumbane shopping complex in Bulawayo last week, that the company was reversing its decision to close the Entumbane branch, opting instead to convert the outlet into a wholesale operation.

“The last time we met, we referenced the closure of a supermarket in the Bulawayo, Matabeleland region, OK Entumbane. We have received confirmation (from the Bulawayo City Council) that they will support us with the wholesale licence so that we can transform our operations from a traditional supermarket into a wholesale facility that operates at a lower cost than the ordinary supermarket.”

Mrs Munyuru said the retailer would also assess the entire estate to find ways to reimagine the premises to optimise and utilise it in a manner that helps revive the business, give it fresh relevance and improve demand from the market.

The parliamentary committee, which is conducting nationwide tours to evaluate business conditions across the country and engage directly with retailers to understand their challenges, also toured some of OK Zimbabwe’s outlets in Harare on Tuesday.

Mrs Munyuru told the committee, led by Zaka South Member of Parliament Clemence Chiduwa, that the firm was now recovering.

“We have already started restocking. A few weeks ago, even a month and a half ago, you would have noticed that even Mazoe was missing from the shelves. The shelves are now filling up,” she said.

Meanwhile, Mr Zireva confirmed the cancellation of its iconic OK Grand Challenge promotion for 2025, breaking a decades-long tradition that has become a staple of the Zimbabwean retail landscape.

The decision marks the second time in the event’s history that it will not take place. The other time the promotion was cancelled was in 2020 due to Covid-19.

OK Grand Challenge, established in 1988, has long been Zimbabwe’s largest and most anticipated retail promotion.

The annual event, renowned for its extensive catalogue of prized giveaways, including vehicles and other high-value items, culminated in a prestigious horse race in almost the same league as the iconic Castle Tankard in terms of national sporting and promotional significance.

Mr Zireva explained to The Sunday Mail Business that preparations for the annual promotion would have typically begun four to five months ago, a period which coincided with operational and financial challenges that led to stock shortages and branch closures at the retailer.

“It is impossible to start (preparations) in March,” said Mr Zireva. “That has to be looked into in the future.”

The OK Grand Challenge has not only been a major retail event but also a platform for community engagement.