OK Zimbabwe Dismisses Speculation on Viability Ami...

OK Zimbabwe Dismisses Speculation on Viability Amid Economic Challenges

Audrey Galawu

Assistant Editor

OK Zimbabwe Limited, one of the country’s largest retail chains, has dismissed growing speculation about its viability following concerns sparked by empty shelves in some of its stores. In a press statement, the retailer assured stakeholders that its operations remain intact despite the current economic environment, which has seen the formal retail sector struggling.

The statement reads:
“It has come to our attention that there has been a surge of frenzied and speculative commentary circulating on social media platforms regarding the viability and going concern status of OK Zimbabwe Limited (‘the Company’).

“We assure all stakeholders, including customers, shareholders, employees, and partners, that our stores are open for trading. Although the Company faced intermittent product supply challenges during the festive period, we continue to serve our loyal customers and contribute to the economic growth and development of Zimbabwe.”

OK Zimbabwe also highlighted the broader economic pressures faced by the retail sector, noting that volatility has adversely impacted supply chains. "We are grateful to our supplier partners, bankers, and other stakeholders for their support at a time when the Company, as well as most of the formal retail sector, has been adversely impacted by a volatile operating environment," the statement continued.

This assurance comes amid a broader crisis in Zimbabwe’s formal retail industry, where supermarkets are facing stiff competition from informal traders. The sprouting of street vendors selling basic commodities at lower prices has led to a decline in foot traffic and revenue for formal retailers. Several supermarket chains have already closed branches, while others are downsising in an effort to survive.

OK Zimbabwe reiterated its commitment to restoring normalcy: "We are actively engaged with our suppliers and key stakeholders, including industry associations and regulators, to restore supplies to normal levels whilst working on solutions that stabilize the trading environment."

Despite the challenges, the company emphasised its dedication to transparency and promised timely communication with stakeholders about any financial updates. "Should there be any official updates or announcements regarding the Company's financial status, they will be communicated through the appropriate channels in a timely and responsible manner," the statement said.

With formal retail under pressure and informal markets expanding, the path forward for companies like OK Zimbabwe will depend on their ability to adapt to changing consumer preferences and macroeconomic realities.