Price stability pumps up volumes for OK Zim

Staff Reporter

OK Zimbabwe Limited, a leading retail group in the country, has reported a 20.2% increase in volumes for the first quarter ended June 30, 2024, compared to the same period last year.

The growth was driven by the success of the OK Grand Challenge promotion and the stability of pricing during the period.

According to the company's trading update, the introduction of the new Zimbabwe Gold currency brought a measure of stability, resulting in a decline in year-on-year inflation from 57.48% in April 2024 to 3.76% by June 30, 2024.

However, the shortage of foreign currency in the formal banking sector continued to put pressure on the exchange rate, with some stakeholders insisting on USD payments for products and services.

Despite these challenges, the domestic economy remained on a growth trajectory, and OK Zimbabwe positioned itself to seize opportunities from increased consumer spending. The company said its commitment to fair pricing practices contributed positively to volume recovery, as customers responded favorably to stable prices.

Financial highlights for the quarter included a 2.2% increase in revenue compared to the same period last year.

USD collections, however, dropped significantly due to the increased use of ZWG by consumers. The growth in volumes resulted in a 28% increase in basket size, despite a 6.8% decline in customer count.

OK Zimbabwe said it remains committed to delivering value to its shareholders by focusing on fair pricing, expanding market presence, and optimising operational efficiencies, while prioritising customer satisfaction for long-term sustainability.