HomeBusinessMeikles to inject $4m into retail division

Meikles to inject $4m into retail division

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MEIKLES Limited will inject $4 million into its retail division, a move that would return it to profitability in the second half of the financial year, the Zimbabwe Stock Exchange-listed conglomerate said yesterday.

BUSINESS REPORTER

The retail division consists of Meikles Store, Barbours and Meikles Mega Market.

In a notice to shareholders, Meikles said the group would now have access to its funds held on deposits at the Reserve Bank of Zimbabwe (RBZ).

“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 financial year. 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,” Meikles said.

In the financial year ended March 31, Meikles said funds on deposit with RBZ had increased to $90,8 million as a result of interest negotiations.

Meikles said it was in receipt of Treasury Bills worth $49,6 million and was advised by the relevant authorities that upon completion of their required processes, Treasury Bills of similar terms to those already in our possession will be issued for the balance.

The Meikles retail division will focus on providing affordable products to the mass market while providing high end 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 and command with key focus on the provision of the required skills,” the notice read.
Meikles Store would operate in all their traditional properties in Zimbabwe, but in a smaller space with the remaining space occupied by Meikles Mega Market and TM Supermarkets.

“It is expected that these developments will ensure that by the end of the calendar year, the Meikles’ Retail Division, together with its company TM Supermarkets, will be the largest retailer in terms of sales in Zimbabwe.”

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