OK Zimbabwe reverses Bulawayo branch closure decision

Retail giant OK Zimbabwe is set to reopen its Entumbane branch, which was closed earlier this year, with a new business model that converts the outlet into a wholesale facility with lower operating costs.

The retailer faced stock shortages in the third quarter ending December 31, 2024, reducing product availability to around 50 percent of normal stocking levels. Zimbabwe's largest retail chain, which operates 67 branches nationwide, attributed the challenges to a tough trading environment and debt constraints.

Group company secretary Margaret Munyuru revealed to the Parliamentary Portfolio Committee on Industry and Commerce, which recently toured the Entumbane shopping complex, that the company was reversing its decision to shut down the branch. However, instead of reopening as a supermarket, the branch will now operate as a wholesale business.

“The last time we met, we referenced the closure of a supermarket in the Bulawayo Matabeleland region, OK Entumbane, and I'm very happy to say that we have reversed that decision with the support of Bulawayo City Council,” Munyuru said. “We are now converting the supermarket into a wholesale facility.”

She added that the retailer had secured confirmation from authorities for a wholesale licence, allowing the company to operate at lower costs compared to traditional supermarkets. OK Zimbabwe is also evaluating its entire estate to optimize and repurpose other premises to enhance market demand and business viability.

The Parliamentary Committee on Industry and Commerce is conducting nationwide tours to assess business conditions and engage with retailers on operational challenges. During a visit to OK Zimbabwe outlets in Harare, Munyuru assured the committee that the company was recovering.

“We have already started restocking. A few weeks ago, even a month and a half ago, you would have noticed that even Mazoe was missing from the shelves. The shelves are now filling up,” she said.

Last month, OK Zimbabwe rehired former chief executive officer Willard Zireva to lead the company through its current challenges, following the closure of five branches. Zireva's return coincided with the departure of the CEO, finance director, and supply chain director.

The Entumbane community welcomed the news of the reopening, despite the shift to a wholesale model. Residents expressed relief, emphasizing the importance of local supermarkets in providing essential services close to their homes and reducing the cost of traveling to the city center for shopping.

Edington Virimayi, a resident of Makhandeni, said the closure of OK Entumbane had forced residents to travel to town for shopping and financial services.

“The closure of OK affected the community. We used to collect money here from our relatives abroad through World Remit, Mukuru, and other money transfer services. Now, we are forced to go to town,” Virimayi said. “OK also had better prices compared to other shops in the suburbs, and they accepted both US dollars and ZiG, which made transactions easier for us.”

He urged OK Zimbabwe to reconsider its decision and reinstate full supermarket services to better serve the community.