OK Zimbabwe Closes 11 Stores as Liquidity Crisis Deepens

OK Zimbabwe Limited (OK) has shut down 11 stores in an effort to curb mounting losses and improve liquidity, reducing its national footprint to 62 outlets.

Since 2024, the retailer has struggled with declining revenue, which it attributes to supply chain disruptions, exchange rate volatility, liquidity shortages, weakening consumer spending, and growing competition from informal traders.

To address a debt burden exceeding US$30 million, the company raised US$20 million through a renounceable rights offer and another US$10.5 million from the sale of freehold properties. For the year ended 31 March 2025, OK recorded a loss of US$25.03 million.

“The group has closed 11 stores, which were no longer viable. Included in the 11 stores are three Food Lover’s Market outlets, which were wound down, and the franchise was not renewed.

“Three more stores are in the process of being closed. The company will continue to operate 62 that are in strategic and good locations. Close monitoring continues, and stores that cease to contribute meaningfully will also be closed.”

Restructuring, Cost Reductions, and Property Redevelopment

OK Zimbabwe stated that the Chisipite Shopping Centre is being redeveloped into a larger mall, with the Bon Marche supermarket relocating to a new facility on the site. The group also revealed that OK Makoni is currently a small outlet unable to support a wide product range.

“OK, Makoni is currently a tiny store that cannot carry a meaningful product range.”

The company has built a new, more spacious store for lease at Makoni Shopping Centre, which is expected to strengthen its competitiveness in this high-traffic area.

Following the store closures, the retailer has trimmed head office staff as part of its restructuring exercise.

“Operating costs have been reduced by 35% and will have been reduced by a further 15% by December 2025. The group has also closed the loss-making pharmacy business.”

OK’s audited loss for the year ended 31 March 2025 represents a 15.5% improvement from the unaudited loss of US$29.61 million initially reported. Similarly, final audited figures for 2024 showed a narrowed loss of US$619,367 compared to an earlier unaudited loss of US$11.04 million.

The group acknowledged that the sale of some properties has taken longer than expected, delaying the realisation of the anticipated US$10.5 million. However, sale and purchase agreements for two properties are near completion, while offers for the remaining three are still being evaluated.