Retail giant, OK Zimbabwe says the easing of Covid-19 regulations during the second quarter of 2021 sustained the Group’s positive sales volume performance owing to increased aggregate demand across key product categories.
Beginning of the year, business activity fell drastically due to stringent lockdown measures to curb the rising cases of the Covid-19 pandemic.
However, around April the economy gradually improved as lockdown measures were relaxed.
In its three months to June trading update, OK Zim sales volume grew by 48 percent over the same corresponding period in 2020, attributed to- “a recovery from more stringent prior year Covid-19 restrictive regulations and the success of the OK Grand Challenge promotion,” the company said.
The Group resumed its flagship OK Grand Challenge Promotion which had been temporarily suspended in 2020 due to Covid-19 lockdown restrictions. Volume performance was aided by a surge in aggregate demand across key product categories.
“Product supply remained stable on the back of improved availability of foreign exchange liquidity accessed through the auction system by our supply partners for both local and imported merchandise,” said OK Zimbabwe.
Revenue for the quarter grew by 263 percent in historical terms and by 49 percent in inflation adjusted terms.
However, towards the end of the quarter, the country experienced a surge in Covid-19 infections and to combat the pandemic, the authorities have responded by further tightening the lockdown restrictions.
“Business trading hours has been reduced from an average of 11 hours to 7.5 hours per trading day. The general curtailment of mobility and economic activity impact disposable incomes and consumer spending,” said the company.
The group anticipates improvements in business activity in the medium term riding on the accelerated national vaccination programme.
