RETAILER, OK Zimbabwe, is extending its sources of supply to Türkiye and China as it targets cheaper supplies to combat the increase in direct imports from South Africa.
For years, South Africa has provided a cheaper option for local consumers to buy groceries as the continued volatility of Zimbabwe’s exchange rate has made businesses keep their pricing high for goods and services.
In its new 2024 annual report, OK Zimbabwe chief executive officer Maxen Karombo said the erratic supply of essential products was the biggest challenge in the retailer’s supply chain during the period.
“The financial year saw an increase in the level of direct imports mainly from South Africa with additional sources of supply coming on board such as the Shoprite Group, Tradeport Group and Food Lover’s Market Distribution,” he said.
“Going forward, we will be extending our sources of supply to countries like Türkiye and China with the goal of diversifying our product assortments and landing the products cheaper for our shoppers. Our house brand strategy continues to grow as we seek to close gaps in our assortments with our own products which helps to improve product availability and also gives our shoppers cheaper alternatives on shelf.”
He said the El-Nino weather phenomenon had a significant impact on agricultural production and had the potential to disrupt OK’s supply chain which will have an impact on pricing and availability.
OK sources a significant portion of its products from local farmers and suppliers, supporting the agricultural sector and contributing to the economic growth of communities it operates in.
Suppliers have shortened trading terms due to exchange rate volatility, causing frequent stock outs which
- Drama at City of Harare bosses trial
- Price of bread skyrockets again
- Price of bread skyrockets again
- ‘Zim’s retailers deserve a wage subsidy’
Keep Reading
continues to remain a risk to the OK group.
“Our strategic initiatives to enhance product offerings, optimise supply chain efficiencies and to expand our digital presence have yielded positive results and positioned the group well for future growth,” OK chairperson Hebert Nkala said.
But, one challenge to these initiatives is the group facing a decline in foreign currency sales following the introduction of the Zimbabwe Gold (ZiG) in April.
“While the full impact of the introduction of the new currency is still being assessed, the group’s foreign currency collection have declined in favour of ZiG. The group continued to implement its volume recovery strategies and is looking forward to volume growth in the coming financial year,” Nkala said.
He said the business intends to sustain this volume growth trajectory through consistent availability of product, continuance of the fair price campaigns and other key volume recovery initiatives implemented by the business.
“As we look ahead, the group remains optimistic about the business landscape and remains resolute in weathering any challenges.”
