Supermarket chain OK Zimbabwe has announced the closure of two stores in Harare, following operating losses. The move aimed at protecting shareholder value in the context of a continued restructure of the business.

Zimbabwean retailer OK Zimbabwe announced the closure of two of its outlets in Harare. The stores at Wynne Street and Cameron Square were shut on the 31st July 2018 and, unlike other outlets of the chain which have closed temporarily, these are not expected to open again.

OK Zimbabwe justified the store closures with the fact that both outlets were operating at a loss and rejects the idea that it is downsizing its operation. The retailer has embarked on a modest business restructuring operation as it focuses on optimising efficiencies. This has meant some outlets were closed, refurbished for enhanced and larger facilities and some opened in other areas. Just recently, new OK supermarkets opened in Waterfalls and in the business district.

When presenting the latest results to shareholders, the company stressed that the effort are already bearing results as stores reopened after refurbishment have already seen meaningful sales increases. The renewed OK Jason Moyo and OK Chegutu stores, for instance, are performing above average.

After a good performance in 2017, in its annual results for the financial year ended March 2018, OK Zimbabwe reported an y-o-y revenue growth of 23.4% to $582.9 million. This has translated into $16.6 million in profit, a significant increase from the previous year, when it profited $6.1 million.