OK to continue expansion despite inflation challenges

24 Jun, 2022 - 00:06 0 Views
OK to continue expansion  despite inflation challenges Mr Maxen Karombo

The Chronicle

Nelson Gahadza, Harare Bureau
Retailer OK Zimbabwe says it will continue with its expansion plans for the current financial year, with a number of refurbishments and new stores scheduled despite challenges presented by high inflation levels and exchange rate volatility.

OK Zimbabwe

The group also plans to upgrade its Information Communication Technology platforms to improve operational efficiencies and support its innovation thrust.

Group chief executive officer Maxen Karombo said during an analyst briefing for the year ended March 31, 2022 that the group was going to focus mainly on improving customer needs and investment in new store network.

“We want to deliver sustainable growth, so we are going to extend our reach through continuous store refurbishment and ensure that our partnership with suppliers, customer groups and various stakeholders are very aligned to our growth opportunities,” he said.

He added that the group also aims to drive technology in order to be a business that is integrated both in store and digital store performance.

Mr Karombo said during the year under review, the group invested in a new store in Banket, along the Harare-Chirundu Highway and in partnership with Chivhu council, acquired a stand and built a brand new OK Mart store.

OK Mart store

“Our investments are not only about new footprint, but we are also going to refurbish stores that we are operating in to show that they are truly centres of happiness for everyone who comes through,” he said.

Mr Karombo said the group, being alive to a hyper-inflationary environment; cost containment becomes a key priority to preserve value.

He said this will not be an easy task, but the group’s evolving model will focus on key pillars that will help deliver value.

“We continue to implore our authorities, especially on the adverse effects of the IMTT.

We continue raising this because we can see its impact on profitability because it is out of profit that we reinvest in business, so it is taking away our capacity to reinvest,” he said.

During the 2022 financial year, sales volume grew by 22,7 percent over prior year.

In inflation adjusted terms, revenue for the year grew by 34,7 percent to $79,9 billion from $59,3 billion in the prior year.

Profi­t before tax of $4,8 billion was 38,5 percent above prior year’s $3,5 billion while profit ­ after tax grew by 48,9 percent to $2,8 billion from $1,9 billion in prior year.

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