Staff Writer 
ZIMBABWE’s formal retail sector is at a crossroads, faced with a confluence of challenges that include “unfair” competition from the bourgeoning informal sector, supply chain complexities arising from exchange rate distortions and high operational costs among others. One of the country’s largest retail firms, OK Zimbabwe Limited (OK Zim) is among the worst affected. The Financial Gazette’s Companies and Markets Editor, Kudzanai Gerede (KG), met with OK Zimbabwe’s group chief executive Maxen Phillip Karombo (MK) who detailed the group’s circumstances and vision into the future.
Below are excerpts from the interview.
KG : OK Zim has been making headlines regarding product scarcity in its stores. Could you briefly share what’s happening and the key priorities for the company right now?”
MK : We appreciate and acknowledge all the attention our business and brand, OK, has received lately. At its core, we understand that this company doesn’t belong to us but to Zimbabwe, and the real owners are ordinary shoppers residing in all cities and towns across our beloved nation. It is also a company that is owned by over 22 000 Zimbabweans who bought shares through the Zimbabwe Stock Exchange.
We are a unique company that is truly Zimbabwean in terms of ownership and customer service. So, it is easy to understand the emotion associated with any issue that might arise at the business.
One of the pressing concerns has been product availability, which we treat as a top priority. The product stockouts in our stores have resulted from a number of issues arising from how we procure and are charged by suppliers.
The currency mix has played havoc with our supply chain in that we procure predominantly in United States dollars but receive a higher proportion of sales in ZWG when customers buy from our shops.
The devaluation of ZWG at the end of September meant that our commitments nearly doubled for goods that were already sold at a lower exchange rate.
So, while re-negotiating with our suppliers, we have unfortunately had to endure painful stockouts as we rebase our business and the way we work.
I urge Zimbabwe to bear with us as we replenish and rebuild our supply chain, filling our shelves with products. We’re doing everything to maintain our reputation as the country’s most trusted retail brand.
KG : As one of the biggest retail businesses in the country, product scarcity can surely create frustration for customers, especially during high-demand periods like the just-ended Christmas and back-to-school seasons. What measures are OK Zimbabwe putting in place to ensure shelves are stocked in the shortest possible time?”
MK : That’s a valid concern, Kudzi and I offer my sincerest apologies to our loyal shoppers. All of us at OK Zimbabwe completely understand how important this is to our shoppers. To address this, we’ve rationalised our range, strengthened some of our key supplier relationships that provide some of the most beloved brands, and secured alternative funding options to bridge the gaps.
KG : Going by recent social media comments, some seem to have a view that you are not innovating and responding quickly enough to the changing market dynamics with the retail landscape evolving so quickly, especially with increased competition and digital transformation, how is OK Zimbabwe staying ahead of the curve?
MK : We have a full pipeline of exciting innovations ready for deployment. As a business innovates, there is always an important consideration on risk assessment, market acceptance and in our case compliance with laws of the land. The market conditions have been extremely tough and have precluded us from deploying our intended initiatives because of the real risk of a negative return on investment arising out of a skewed pricing regime that renders products in the formal retail sector more expensive than alternative markets. As both Monetary and Fiscal authorities work on various macroeconomic stabilisation measures, it is my firm hope that we are now entering a phase where formal retailers will have a free hand on pricing to gain competitiveness, protect margins, and provide a fair return on investment for shareholders. A review of the cost of doing business is also very urgent across the board. I urge the authorities to review the number and nature of licensing for formal retail. No less than 26 licences are required to operate a single full-scale supermarket, the cost of utilities especially electricity has increased to unsustainable levels, and the quality-of-service delivery by local councils has been extremely poor. Internally, we have to review our cost structures to respond to the changing market dynamics.
I want to reassure all our stakeholders that once we stabilise our operations, we will introduce to the market our expanded digital platforms and are at the cusp of launching a new online store while modernising our stores to create a more engaging shopping experience with a brand new OKMart in Pomona set to open in the first half of this year. We are also poised to launch a new OK Store at Makoni Shopping Centre in Chitungwiza, another OKMart at Liberation City Shopping Centre and revamp our Avondale FoodLovers shop. Our landlord at Chisipite Shopping Centre is renovating the mall, and our Bon Marche store will be the anchor store. Our in-store Pharmacy brand, Alowell, continues to piggyback on its existing store footprint to expand its territory. So, we have an entire pipeline of innovative projects.
KG : As group chief executive, what’s your vision for the company in the future, and how does it factor in current challenges like product scarcity.
MK : OK Zimbabwe is a brand with a proud legacy, and our mission is to make happiness tangible to our employees, customers, suppliers, shareholders, and communities we work in. We build on that heritage while adapting to today’s realities. We’re committed to operational excellence, which includes addressing immediate challenges like product scarcity through stronger supplier partnerships and improved supply chain management.
The year 2025 will be a year to reset everything at OK Zimbabwe. I have learnt through life that one should never waste a crisis. So, we will take this year to review our Operations by rationalising our portfolio of branches as we remove loss-making units; increase our brand focus through divisionalisation to enhance differentiation and operational efficiencies; streamline Head Office functions to provide better service to our stores and build synergies between divisions, and review our strategic ambitions for next five years.
The challenges of resetting our supply chain are temporary; we are focused on building a business for the future.
KG : As we conclude, give us your parting shot.
MK : Thank you Zimbabwe for your love – OK Zimbabwe will rebound through the cooperation of all our stakeholders. Once again, bear with us as we navigate our way around the issues at hand. We understand that we are an important channel for wide distribution to our suppliers and a retail theatre for brands to bring to life their different propositions to consumers. We want to serve the nation with fair pricing, promote Zimbabwe’s beloved brands; and assure customers that whatever they buy from our shops is genuine and safe. Our ultimate aim as we open our shops every day is to make happiness tangible for all.
KG : Thank you for shedding light on these critical issues and sharing the company’s vision with us. All the best.
