Food Lovers Market shutdown exposes deeper turmoil at OK Zimbabwe

The impending closure of Food Lovers Market outlets in Borrowdale and Avondale signals a deeper crisis engulfing OK Zimbabwe, the country's largest retail group, which is struggling to stay afloat amid worsening economic conditions.

OK Zimbabwe announced plans to shut down its two flagship Food Lovers Market stores in Harare by the end of June 2025 as part of a broader corporate restructuring effort aimed at stabilizing its operations. The move reflects the growing financial and operational difficulties facing the retailer, intensified by a harsh economic environment, strategic challenges, and dwindling consumer spending.

Margaret Munyuru, company secretary of OK Zimbabwe Limited, confirmed the decision in a statement:
"As part of the ongoing planned corporate restructuring thrust, a strategic decision has been taken to cease operations at Food Lovers Market stores in Harare's Borrowdale and Avondale suburbs with effect from June 30, 2025."

She explained the closures are part of a rationalization programme intended to focus resources on OK Zimbabwe's core businesses and improve overall performance. The group is also formally withdrawing from the Territorial License Agreement that granted it exclusive rights to operate and expand the Food Lovers Market brand in Zimbabwe.

The high-end Food Lovers Market concept, which catered to upper-middle-income consumers with fresh produce, imported goods, and premium groceries, struggled to gain sufficient traction in an economy increasingly dominated by survivalist spending. Inflation soaring to 92% in May, erratic power supply, currency volatility, and a sharp drop in disposable incomes have all contributed to declining foot traffic and empty shelves at many OK Zimbabwe outlets.

Munyuru reassured customers and suppliers:
"We encourage our valued customers to take advantage of significant in-store discounts as we clear existing stock. We also assure all Food Lovers Market creditors that outstanding balances will be settled by OK Zimbabwe Limited."

Industry analysts warn the closure could be the start of deeper retrenchments. Independent retail expert Tendai Chakamba told Business Times:
"This is more than cost-cutting-it reflects a business in retreat. OK Zimbabwe requires a bold transformation strategy tailored to today's retail realities rather than cosmetic fixes."

The company's financial reports reveal shrinking profit margins, rising debt levels, and operational disruptions fueled by supply chain inefficiencies and foreign currency scarcity. Despite leadership changes and a recent US$30 million capital raise, the outlook remains uncertain.

OK Zimbabwe remains committed to its core brands - OK Stores, Bon Marché, and OKmart - which management says will continue nationwide. However, questions linger over whether these formats can withstand ongoing economic shocks and shifting consumer preferences toward informal markets and online shopping.

Munyuru emphasized:
"Our three well-renowned brand formats-OK Zimbabwe, Bon Marché, and OKmart-are here to stay."

Still, experts suggest that the Food Lovers Market's premium positioning and licensing obligations may have strained the group's balance sheet beyond sustainable limits.

The closure of the Borrowdale and Avondale Food Lovers stores marks a symbolic retreat for OK Zimbabwe, whose ambitions to elevate retail standards in Zimbabwe have been severely tested by the country's deteriorating economic landscape.

Munyuru concluded on a hopeful note:
"We extend sincere appreciation to the franchisor, loyal customers, suppliers, and stakeholders who have supported these stores over the years. Despite challenges, OK Zimbabwe remains focused on strengthening its core supermarket operations and delivering value to customers nationwide."

Whether the company can successfully navigate this turbulent period will depend on its ability to innovate, adapt, and execute a customer-centric strategy amid Zimbabwe's tough economic realities.