OK Supermarkets, Zimbabwe’s largest supermarket chain, has reported that year on year net income rose by 801% to US$6.06m in the financial year ending March 2017. The chain, which has 63 stores in Zimbabwe, had revenues of US$472.4m. Operating profit rose to US$8.6m from US$1.3m.
The most interesting indicator is that revenues are nearly as high as their peak in 2014, when the chain achieved revenues of US$483.7m. OK Supermarkets has geared its product offering towards higher margin products and also seen revenue generation from its in-store banking facilities.
Chief Executive Alex Siyavora has noted that private label has yet to show growth and warned that “local supply is still hamstrung by outdated technology, lack and cost of capital as well as the state and cost of utilities.” The group plans to refurbish six stores and roll out more bakeries and butcheries, both of which deliver higher margins.
