Zimbabweans have been left wondering about recent branch closures of OK Zimbabwe stores nationwide.
These closures have significantly impacted both customers, who now face longer travel distances to reach open stores, and employees, who are facing job losses amidst rising unemployment concerns.
Margaret Munyuru, OK Zimbabwe’s secretary, addressed Parliament to explain the reasons behind these closures and the challenges affecting the retailer.
A primary factor is the increasing cost of running supermarkets in Zimbabwe.
One of the major contributors to these rising costs is Zimbabwe’s ongoing electricity shortages.
This forces OK Zimbabwe to rely extensively on expensive diesel generators. High property rentals also put a strain on the company’s finances, with landlords continually raising rent prices, making it unfeasible to keep some stores open.
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Furthermore, Munyuru highlighted the challenging business environment in the country. The need to comply with numerous retail licenses creates a bureaucratic burden that slows down business operations and increases compliance costs, affecting profitability.
To address these issues and ensure long-term stability, OK Zimbabwe’s leadership is actively exploring strategies to navigate these difficulties and adapt to the persistent economic challenges.
The company aims to remain competitive while balancing profitability with sustainability in Zimbabwe’s difficult economic climate.
See video below:
