Two of Zimbabwe’s leading supermarket chains have reported sales declines as inflation, weak currency and stagnant salaries restrict disposable incomes and soften consumer demand. Sales at OK Zimbabwe and Meikles fell 15% and 24% respectively in the 9 months to December 2019.

In a trading update, OK Zimbabwe said that “While there was relative stability in the exchange rate during the quarter to December, 2019, product prices continued to increase albeit at a slower pace.” It noted that the Christmas period relatively little activity even though stores had been well stocked.

In more positive news, OK Zimbabwe said that for the quarter to end December 2019, revenues were up 10% on an inflation adjusted basis, and up 513% on a historical basis. In 2020 the retailer plans to focus on cost containment and opening new stores in areas where it does not operate.

At Meikles, Pick n Pay’s partner in Zimbabwe, sales volumes fell by by 28% and 24% for the quarter and nine months to December 2019 respectively, compared to the same period last year. It also noted that stores were typically well stocked, despite issues with availability of fx. Meikles places the blame on the impact of hyperinflation on consumer incomes. It also said that shortages of fx and intermittent supply of both fuel and electricity had disrupted production and availability of goods.

95% of Meikles revenues come from its supermarket operations, TM Pick n Pay stores, a partnership with Pick n Pay. On an inflation adjusted basis, Meikles’ revenues increased by 23% and 14% (475% and 335% in historical cost terms) for the quarter and nine months respectively. Its bulk tea and hospitality businesses both struggled.