RETAIL giant OK Zimbabwe has assured its customers that its stores are open for trading amid reports of closure of some branches across the country.
This comes as there are growing concerns over the future of major retail shops in the country in the face of the ubiquitous and unregulated informal sector.
In a statement yesterday, OK Group company secretary Margaret Munyuru said the retail giant was going to continue to serve its customers and contribute to the economic growth and development of the country.
“It has come to our attention that there has been a surge of frenzied and speculative commentary circulating on social media platforms regarding the viability and going concern status of OK Zimbabwe Limited.
“We assure all stakeholders, including customers, shareholders, employees, and partners, that our stores are open for trading. Although the company faced intermittent product supply challenges during the festive period, we continue to serve our loyal customers and contribute to the economic growth and development of Zimbabwe.
“We are grateful to our supplier partners, bankers and other stakeholders for their support at a time when the company, as well as most of the formal retail sector, has been adversely impacted by a volatile operating environment,” Munyuru said. She added that they were working with all stakeholders in the retail sector on measures to stabilise the market.
“We are actively engaged with our suppliers, and key stakeholders, including industry associations and regulators, to restore supplies to normal levels whilst working on solutions that stabilise the trading environment.
“We are committed to transparency and open communication with all stakeholders. Our corporate pledge is to continue to make happiness tangible by planting smiles on our employees, customers, suppliers, shareholders and the communities we operate in.
“We appreciate the continued support and trust of our stakeholders and look forward to serving you with excellence as always,” Munyuru said.
In its appreciation paper of the 2025 national budget presented in Parliament last year, Confederation of Zimbabwe Retailers (CZR) president Denford Mutashu said authorities must prioritise the stabilisation and growth of formal businesses by implementing targeted interventions and fostering an environment conducive to investment.
“The 2025 budget fails to introduce substantive measures to regulate and formalise the informal sector. “CZR has long advocated for policies that encourage the transition of informal businesses into the formal economy.
“These could include tax incentives for formalisation, simplified registration processes, a simplified tax model (presumptive tax system) similar to that of Tanzania and targeted enforcement to ensure compliance.
“The budget does not sufficiently tackle the structural and operational challenges confronting our industry. With the sector in a state of emergency, as evidenced by the closure of major retailers like Choppies and Food World and the downscaling of Mahommed Mussa, urgent and strategic interventions are required.
“The informal sector continues to grow unchecked, posing a significant threat to the viability of the formal retail and wholesale sector. “Informal operators, who largely evade taxes and regulatory compliance, enjoy an unfair competitive advantage over compliant businesses.
“This imbalance has contributed to the closure of major retailers and the decline of formal sector operations,” Mutashu said.