Zimbabwe Stock Exchange-listed retail group OK Zimbabwe, whose revenue jumped 31,5% in the first quarter ended June — compared to last year — plans to open a new branch in the resort town of Victoria Falls.
Revenue in the first there months of its financial year rose to $117,1 million compared to $89 million achieved over the same period last year.
Speaking at the company’s annual general meeting last Friday, OK Zimbabwe chief executive officer Willard Zireva said contribution to the group by the year-old OK Mart had risen to 15% from 8,3%.
“We anticipate that it’s (OK Mart) contribution will stabilise around this level,” said Zireva. “We are looking at opening a store in Victoria Falls, as we have not been represented in that area.”
The retail group is targeting a 20% growth in full-year revenue.
Group retail sales growth in the three months was up 21% while profit before taxation jumped to 49%.
“We still aim to achieve revenue growth of 20% or higher for the year,” said Zireva.
He said focus on effective control over shrinkage and tightening management of other overheads would continue.
Zireva said due to low investment caused by the country’s poor rating as an investment destination, relatively poor agriculture season, liquidity issues and the general world economic woes, the local economy had stagnated.
The OK boss said the refurbishment of Bon Marché Avondale, Harare, had been completed while that of OK Marimba, Harare, was in full swing. The store should be reopened in August.
Refurbishment of OK Five Avenue, Harare, is expected to start in August.
Zireva said four other outlets were lined up for refurbishment during the financial year, with at least one being ready before the Christmas holiday.