ONCE the crown jewel of Zimbabwe’s formal retail sector, OK Zimbabwe is steadily losing shopper confidence as empty shelves, quiet tills and patchy stock availability increasingly define the in-store experience.
Despite restructuring efforts, a fully subscribed US$20 million rights issue and an ongoing asset disposal programme, the retailer’s recovery remains fragile, according to a Zimbabwe Independent survey conducted this week across Harare and Bulawayo outlets.
Store visits revealed sparsely stocked shelves across key categories — dairy products, fresh produce, bakery, butchery, hardware and staple household items such as maize-meal — reinforcing growing consumer frustration over unreliable stock levels.
Branches that once thrived on heavy foot traffic and brisk turnover now appear subdued.
Tills previously manned by five or more operators have in many cases been reduced to just one or two cashiers.
“Most of the time the things I need are not there,” said Tinashe Moyo, a Harare-based customer interviewed outside an OK store at Machipisa Shopping Centre in Highfield, Harare.
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“You end up wasting time and then going to another supermarket or buying from informal traders.”
In Bulawayo, customers expressed similar disappointment, saying the retailer has lost its reputation as a dependable one-stop shop.
“This used to be my go-to supermarket,” said Nomusa Ncube, a long-time customer in the city’s central business district.
“Now you walk in and there is nothing — no milk, no fresh vegetables, sometimes not even bread. It doesn’t feel like OK anymore.”
Another shopper, Farai Chuma, said pricing was no longer the central issue.
“Pricing is not really the problem. The problem is consistency. You can’t plan your shopping when you don’t know what you will find,” he said.
Conditions observed on the shop floor mirror the grim picture painted in OK Zimbabwe’s interim financial results for the half-year ended September 30, 2025.
Revenue collapsed to US$28,26 million, an 84% decline from the same period last year, while sales volumes plunged 82,68%.
The group posted a net loss of US$17,81 million, highlighting the severity of its liquidity crisis.
Former chairperson Herbert Nkala acknowledged in last year’s results that the company had shifted into survival mode rather than growth.
“Limited working capital continued to restrict stock availability across all key categories, with supplier trading terms not yet allowing the business to rebuild inventories to required levels,” Nkala said in the financial results for the half-year ended September 30, 2025.
“Although engagements with suppliers have enabled the resumption of deliveries, stock cover remained below optimal levels and affected trading performance.”
Kudakwashe Taimo, a financial analyst at Fincent Securities, said a turnaround remains possible but warned it will be slow and capital-intensive.
“The challenges facing OK Zimbabwe are deep-seated and largely balance-sheet driven rather than purely operational,” he said.
“The group entered this phase with a funding gap of approximately US$30,5 million, of which US$20 million was raised through a rights issue. However, delays meant additional liabilities were incurred, and the remaining US$10,5 million from property disposals has yet to materialise.
“Until liquidity improves, rebuilding stock, normalising supplier terms and regaining customer confidence will remain constrained.”
Taimo added that restoring liquidity was central to stabilising operations.
“The turnaround will not succeed without stabilising liquidity. Supplier confidence, customer trust and operational momentum all depend on the group’s ability to fund inventory consistently,” he said.
Tafara Mtutu, senior analyst at Morgan&Co, said the retailer’s problems ran deeper than funding constraints alone, pointing to structural shifts in the retail sector and strategic misalignment.
“The challenges facing OK Zimbabwe exist on multiple levels, and they raise serious questions about whether funding alone will be sufficient to resolve the company’s problems,” Mtutu said.
“Structurally, the retail sector has evolved in a way that disadvantages formal retailers operating in low-income areas.
“Consumers in these locations increasingly prefer to source FMCG products from the informal sector, where prices are lower. This makes it difficult for formal retailers to compete.”
Mtutu said OK Zimbabwe’s long-standing focus on low-income, high-density areas had become a strategic weakness as consumer behaviour shifted.
“By contrast, competitors such as TM Pick n Pay largely operate in higher-income areas, particularly north of Samora Machel Avenue, where demand is more inelastic and foot traffic remains consistent,” he said.
He also highlighted strained supplier relationships as a major risk.
“Even after the capital raise, some suppliers remain hesitant to resume normal trading relationships. The issue is not just whether arrears are paid, but whether stock will move within a reasonable timeframe,” Mtutu said.
“As a result, many suppliers are increasingly directing stock to other formal retailers or informal traders, where volumes are higher and turnover is faster.”
OK has reconstituted its board as part of its turnaround strategy, with Nkala retiring and five new non-executive directors appointed.
The group is also rationalising its footprint, having closed 11 outlets and signalling that further closures are likely.
On the bourse, OK’s shares have been trading between ZiG0,117 and ZiG0,118, reflecting a 9,62% decline year-to-date. The company’s market capitalisation stands at approximately ZiG151,8 million (US$5,9 million).
For shoppers, however, the verdict remains cautious.
“I want OK to recover,” said Ncube. “But they need to fix the basics first. Until the shelves are full again, people will keep going elsewhere.”