ZIMBABWE – OK Zimbabwe Limited, ZSE listed supermarket retailer has opened a new outlet in Glen View, Harare bringing its OK stores to 49 as it continues to consolidate its market share in the retail space, according to the Herald report.
The new outlet will serve residents in Glen View and other regions such as Budiriro, Glen Norah and the sprouting Churu Farm.
OK’s chief executive Alex Siyavora said the new outlet was in a good location, could be a positive addition to the group with expectation to generate good sales.
The expansion move could be a sign of confidence in the county’s economy even as the use of plastic money was expected to remain unchanged in the near future.
The new store brings the Group’s total outlets to 63 including eight Bon Marche’ and six OK Mart stores.
According to analysts, OK’s revenue for the financial year 2019 to jump 11% to US$651 million on the back of the anticipated robust performance in the primary sectors that drive consumer market coupled with the use of plastic money.
OK is said to be at a better competitive advantage to claim a bigger market share in Glen View where most outlets are semi-formal and are still to adopt electronic payment systems while those making use of POS machines have their prices at a premium compared to cash prices.
OK’s revenue jumped 23% to US$582 million in the year 2018 on the substantial migration of transactions from cash dependent informal sector to formal sector where the use of plastic money has become the order of the day.
Revenue for the first quarter of the financial year 2019 rose 20% above same period last year despite increases in operating costs, marking positive growth for the company.
The retail giant runs one of the country’s biggest annual promotion, the Grand Challenge Jackpot Promotion and according to the group CEO, significantly contributed to the quarter’s performance.
In the middle of supply problems in a challenging economy, the firm said it expected to meet its sales targets for the next quarter as well as maintain the growth in earnings.