Retail group, OK Zimbabwe Limited sales volumes dropped significantly in third quarter (Q3) to December owing to a notable decline in consumer spending power.
Rising inflation as well as tight liquidity on the market at the tail-end of last year weighed heavily on consumer spending habits – traditionally the peak shopping period coinciding with the festive season.
In its Q3 trading update, OK Zimbabwe said as a result its sales volumes decreased by 11.33 percent for the quarter and 9.37 percent for the nine months to December 2022 compared to the prior year.
“Liquidity constraints were witnessed in the last three months of 2022 resulting in dampened consumer demand,” said the group.
The group is also facing stiff competition from informal retail players.
The Group embarked on a volume recovery plan which resulted in a growth of 3 percent being recorded for the month of December 2022 compared to the prior year.
The company’ s revenue grew by 18.3 percent for the quarter and 28.4 percent for the nine months in inflation adjusted terms compared to growth of 320.4 percent and 315.8 percent for the quarter and nine months to December 2022 respectively in historical cost terms .
Profit margins are consistent with prior year and in line with the Group’s plans for the current year.
During the period the group completed the acquisition of Food Lover’s Market franchise stores from Talwant Trading (Private) Limited and its subsidiaries.
Three stores namely Food Lover ‘s Market Avondale, Borrowdale and Bulawayo were added to the OK Zimbabwe Limited’s table and whose performance will be included in the final quarter of the Group’ s financial year .
The first in- store pharmacy operated by OK Zimbabwe Limited was opened in Glen View, trading under the Alowell Pharmacy brand. Roll out of more pharmacies i s planned in various other branches during the last quarter of 2023.
