Mishma Chakanyuka, Staff Writer 
RETAIL giant OK Zimbabwe Limited (OK Zimbabwe) managed to save up to US$40 000 in overall monthly distribution costs during the fiscal year ended March 31, 2024 following a major investment into its delivery fleet.
The investment is part of the group’s long-term strategy to assume control of its stock delivery value-chain and minimise hiring of third-party delivery services to its distribution centres across the country.
In its 2024 annual report, OK Zimbabwe chief executive, Maxen Karombo, said the distribution centres have increasingly become important in centralising and making the group’s procurement processes easier.
“Twenty-seven percent of our turnover is now generated from products coming from our distribution centres. We have seen this grow from 15 percent during the previous reporting period,” Karombo said.
“We added four new 30-tonne boxed trucks to our delivery fleet meaning that we are now able to service our delivery schedule without hiring third-party transport services thereby reducing our overall cost of distribution by an average of US$40,000 per month.”
Meanwhile, OK Zimbabwe is actively pursuing its store network expansion plans to reclaim lost market share amid notable volume declines in the past few years.
The country’s largest retail chain by store footprint has lost significant market share due to the sprawling informal retail market and uncompetitive trading conditions emanating from exchange control measures by the authorities to boost usage of a weak local currency.
OK Zimbabwe has been progressively growing its store footprint by way of the acquisition of smaller retail businesses as well as setting up new stores to improve customer reach.
The group said during the year ended March 31, 2024, it invested ZW$157,4 billion in capital expenditure.
“The bulk of the expenditure was channelled towards the store footprint expansion,” said OK Zimbabwe group chairman Herbert Nkala in a statement accompanying the financial results for the year.
“The group utilised bank credit facilities to fund strategic growth initiatives by its short to medium-term growth plans.”
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