Zimpapers Logo

Meikles Departmental Store in Bulawayo

Oliver Kazunga Senior Business Reporter—
ZIMBABWE Stock Exchange-listed Meikles Limited plans to inject about $4 million into its retail division and tap into the beauty and hair salon business to boost revenues. The company said it will use part of the estimated $89 million owed to it by the Reserve Bank of Zimbabwe in deposits over the years, which have been accruing interest amounting to millions of dollars since liberalisation of the economy in February 2009.

“The group will now have access to its funds held on deposit at the Reserve Bank. As a result approximately $4 million will be injected into the retail division, which will have a material impact on the second half of the current year,” said the group in a notice to shareholders yesterday.

“We believe that the division will return to profit and a positive cash flow in the second half of the financial year, while growing its market share.”
The group said it was focused on turning around its fortunes through providing “affordable” products to the market while providing high-end fashion clothing and accessories through Barbours.

“Sales in Barbours are up on the previous year while sales in Meikles Mega Markets have been growing very rapidly. The division is in the process of rationalising costs through the centralisation of its head office structure and combining all activities under a single structure,” read the notice.

The group said it would continue operating in all of its traditional properties in Zimbabwe, although in smaller space but more focused than in recent past.
“The remaining space in each unit will be occupied by Meikles Mega Market and in certain units by TM Supermarkets. Meikles Mega Market is a rapidly growing participant in the Zimbabwe retail environment and we shall add more units in the high density suburbs of Zimbabwe,” said the group, adding that it was pleased to announce the launch of new beauty and hair salons on its business train.

“We expect the beauty and hair salons to make an immediate impact and contribute positively to our profits and cash flows while making efficient use of our space.
“We’ve given this top priority and expect the first salon to be opened in October and others to be launched before the end of the year,” said the group.

The notice said the company had the capacity to establish businesses in spaces that were not being fully used by TM Supermarkets and Meikles Mega Market, the objective being to secure beneficial occupation of all its various properties.

It is hoped that shareholders would witness positive developments which are already underway and would result in a revitalised retail division.
Meikles hopes its retail division and TM Supermarkets will be the largest profitable retailer in terms of sales in Zimbabwe.

“The retail division will be profitable, it will have strong positive cash flows and strong management team with passion and focus,” said the group.