Zireva’s Year-Long Mission to Restore Brand Confidence At OK Zimbabwe

HARARE – OK Zimbabwe’s re-appointed CEO Willard Zireva, says that it would take at least a year to restore market confidence in the brand following the damage done previously. He also said that the retailer would not be having its flagship promotion: OK Grand Challenge this year.

In an interview with FinX, Zireva shared his vision for the struggling company, which has been struggling to regain its market foothold.

“I have a singular objective: to return OK to a position where it plays a positive role in the country as a viable enterprise,” Zireva expressed.

OK Zimbabwe has faced significant operational challenges, battling macroeconomic instability marked by exchange rate fluctuations and changing consumer preferences. These issues have led to severe cash flow constraints and supply chain disruptions, resulting in frequent stockouts and a decline in daily product availability to about 50% of normal levels. OKZL has more current liabilities than current assets, leading to a working capital deficit of USD 12.3 million and a current ratio below 1, which suggests liquidity challenges for the group as of January 31, 2025.

With extensive experience, including a tenure as CEO from 2001 to 2017, Zireva is well-equipped to address these challenges. During his previous leadership, he adeptly guided the company through significant economic turmoil, including the hyperinflation crisis of 2008, while maintaining its operational stability.

To accomplish his goals, Zireva underscored the importance of clear action plans and the support of all stakeholders, particularly shareholders. “There are numerous measures required to revive the company, and this will be achieved through clear action plans and support from all stakeholders, including shareholders,” he stated.

While Zireva did not disclose a specific amount needed to recapitalize the business, he acknowledged that it would be a considerable undertaking.

Regarding the restoration of market confidence, Zireva cautioned that it would take time, estimating at least a year for substantial confidence in the brand to be reestablished. “I believe it will take at least a year for the market to regain significant confidence in the brand considering the damage that has been done, and the rebuilding process must continue,” he noted.

He also indicated that the annual OK Grand Challenge promotion would likely be suspended this year, citing insufficient preparation and logistical support as the main reasons. “I don’t think we would have gathered enough support to proceed with the OK Grand Challenge this year, as all plans would have typically been finalized by now.”

Disputing claims that a six-month timeline would suffice for a complete restructuring of the group, Zireva clarified that his agreement with the board allows for an extended tenure as needed to achieve the company’s turnaround objectives. “No, six months is definitely not enough to fully restructure the group and leave the company in a solid position, and the understanding with the board is that our tenure will be extended as we move forward.”

Zireva’s newly announced turnaround strategy is critical for revitalizing OK Zimbabwe’s market position and rebuilding its reputation as a competitive retail entity, especially following the company’s recent trading update, which revealed a 36% revenue decrease for the third quarter ending December 31, 2024. This decline was linked to reduced consumer spending, currency depreciation, and supply chain disruptions. In response to these challenges, previous management enacted cost-cutting measures, including the closure of four underperforming store locations. -finx