OK Zimbabwe records 48% growth in sales for first quarter

Volume performance was aided by a surge in aggregate demand across key product categories.

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HARARE – Leading retailer, OK Zimbabwe Limited has reported that its sales volume increased by 48% in the first quarter of the 2022 financial year ended 31 June 2021 compared to the corresponding period last year.

In a trading statement released on Friday 23 July 2021, the Group which operates top retail outlets namely OK Stores, Bon Marché and OKMart attributed the growth in sales volume to recovery from more stringent prior-year Covid-19 restrictive regulations and the success of the OK Grand Challenge promotion which had been temporarily suspended in 2020.

During the quarter, the Group’s revenue in inflation-adjusted terms was 49% ahead of that recorded during the same period in 2020 aided by a surge in aggregate demand across key product categories.

The Group’s performance was somewhat slowed down towards the end of the quarter, as the government further tightened lockdown restrictions as a response to the surge in COVID-19 infections.

The Group noted that trading hours have 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 Group.

As a response to the pandemic, the Group said that it has intensified alertness and responsiveness to the spike in infections and will continue to implement protocols to ensure the safety of the communities in which it operates.

“The Covid-19 pandemic is expected to persist in the foreseeable future and this will affect businesses across the sectors,” the Group said.

“The accelerated national vaccination programme is quite commendable as it gives hope that the virus will be contained in the medium term.”

Equity Axis News

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