OK Zim in marginal Q3 sales growth

Retail chain, OK Zimbabwe said last Friday the Covid-19 pandemic continues to squeeze its performance as consumer movement remains restricted after recording a marginal seven percent growth in sales during the festive season quarter ending December 2020.

The chain, made up of OK Stores, Bon Marchè, Money Wave and OK Mart, said in a trading update it however continued to operate profitably.

“Sales volumes grew by seven percent for the quarter but were below prior year by 15 percent for the nine months,” company secretary Margaret Munyuru said.

“While the year to date volume is negative this, is an improvement from the retreat by 26,9 percent reported for the half year ended 30 September 2020.”

Revenue was up 27 percent during the quarter in inflation adjusted terms.

With a Level 4 lockdown imposed early this month to curb the rising cases of Covid-19, Munyuru said the business continued to record “reasonable levels of trade.”

“Our stores were reasonably stocked at the end of the festive season and manufacturers of essential products have resumed production and are delivering goods to our stores,” she said.

“The good rainfall received this agricultural season points to a good harvest and this is expected to result in improved consumer spending power and consumption.”

With the Covid-19 situation not expected to end in the foreseeable future, Munyuru said the company remained in a sustainable cash generating position to remain solvent and profitable.
– New Ziana.