Retailer OK Zimbabwe reported that stable pricing during the four months ending June 30, 2024, played a key role in boosting sales volumes, as customers appreciated the company’s focus on fair pricing.
The introduction of Zimbabwe’s new currency, Zimbabwe Gold (ZiG), in April has contributed to price stability, reducing inflation and improving the exchange rate and economic conditions.
In the grocery sector, prices of basic goods have remained steady since the introduction of ZiG. According to OK Zimbabwe group company secretary Mrs. Margaret Munyuru, volumes grew by 20.2% compared to the same period last year, largely due to the success of the OK Grand Challenge promotion, which for the first time included OKmart stores.
“The success of the promotion was supported by key partner suppliers and the stabilizing effect of the ZiG currency,” Munyuru said.
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She added that the economy continued to grow, with OK Zimbabwe well-positioned to benefit from rising consumer spending. Liquidity challenges did affect trade during the period, but the Reserve Bank of Zimbabwe increased the circulation of ZiG notes and coins, alleviating cash shortages.
Group revenue for the period rose by 2.2% compared to the same period last year. However, revenue in US dollars declined in the last quarter of FY2024 and the first quarter of FY2025 as more consumers transitioned to using ZiG.
Despite higher sales volumes, revenue growth was modest due to an increase in bulk product sales, which have lower unit prices. This led to a 28% increase in basket size, despite a 6.8% decrease in customer numbers.
OK Zimbabwe praised the government’s fiscal and monetary policies and reaffirmed its commitment to delivering value to shareholders. The company plans to focus on maintaining fair pricing, expanding its market presence, and improving operational efficiencies to ensure long-term success.
However, the company noted that foreign currency shortages in formal banking continued to pressure the exchange rate, with some traders demanding US dollars for goods and services.
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