- OK Zimbabwe Limited to close its premium Avondale and Borrowdale outlets on June 22 and June 8, 2025, respectively
- Five underperforming stores were also closed in early 2025
- The dream of premium retail dominance has quickly unravelled due to unsustainable financial pressures
Harare-Less than two years after its ambitious acquisition of Food Lover’s Market franchises, OK Zimbabwe Limited, the country’s largest retailer by store count with over 70 branches, is set to close its premium Avondale and Borrowdale outlets on June 22 and June 8, 2025, respectively.
The closures, according to the latest company circulars highlights the brutal economic storm battering Zimbabwe’s formal retail sector, with OK Zimbabwe caught in a whirl of macroeconomic volatility, liquidity shortages, and mounting debts.
OK has also shuttered five underperforming stores in early 2025, aiming to streamline operations and cut costs.
In January 2023, OK acquired Food Lover’s Market outlets in Harare’s affluent Avondale and Borrowdale neighbourhoods, alongside a store in Bradfield Bulawayo, as part of a bold strategy to capture the premium retail market.
The deal, which included a Territorial License Agreement for brand expansion, was a step toward enhancing OK’s offerings in gourmet and fresh produce while leveraging supply chain synergies.
Group CEO Maxen Karombo, at the time, emphasized the move’s potential to support local farmers and bolster economies of scale. Yet, the dream of premium retail dominance has unravelled swiftly, with the closures reflecting the unsustainable financial strain these ventures placed on the company.
Unlike informal traders, who operate free from rigid pricing regulations and often deal in USD cash, OK has been forced to contend with an official exchange rate that distorts pricing and erodes margins.
The retailer reported a 36% revenue drop in Q3 2025, with debts ballooning to US$17 million and ZiG537 million owed to suppliers.
Empty shelves and declining foot traffic have become hallmarks of OK’s woes, as unpaid suppliers cut credit lines, triggering stock shortages that have tarnished its reputation as a reliable one-stop shop.
The Food Lover’s Market acquisition, once a symbol of ambition, has become a cautionary tale. The high operational costs of these premium outlets, coupled with a reliance on USD denominated obligations in an economy dominated by local currency collections, created a vicious cycle of declining sales and mounting debts.
The closures will affect hundreds of workers, adding to Zimbabwe’s staggering unemployment crisis.
In a bid to stabilise its finances, OK Zimbabwe in April 2025 started pursuing a US$30 million capital raise through a mix of rights issues, private placements, and debt instruments to clear supplier arrears, restock shelves, and boost liquidity.
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