ZIMBABWE – The Meikles group is due to invest $4 million in its retail chain, a move that is aimed to return the division to profitability in the second half of the current financial year.
The group will use some of the funds owed by the Reserve bank to build up inventory at the retail division, accrording to The Herald.
The division consists of Barbours, Meikles stores and Meikles Mega Market.
The divisions operations had been hugely curtailed following the stringent pricing measures imposed before the introduction of multi currency system in 2009 and was still recovering. The group said the stores were forced by authorities to sell inventories at prices lower than initial cost.
The group has also operated without benefits from its deposits that are held up at the Central bank.
Meikles said, “The retail division has been unable to invest in inventories or unit improvements as it should in a dynamic environment and losses have been made as a result”.
According to The Herald, the Group said it will now have access to the funds held on deposit in the Reserve Bank.
As a result of this, $4 million will be injected in the retail division to bring about profits in the second half of the financial year. The division is expected to increase positive cash flow as well as increase its market share.