HARARE – OK Zimbabwe Limited, the country’s largest listed retail supermarket group, is facing mounting pressure to dispose of several key properties in order to service loans amounting to US$24 million, but progress has been slower than expected, delaying the company’s wider turnaround strategy.
As part of its recapitalisation plan, the supermarket group targeted US$30.5 million to restock and settle debts. Shareholders injected US$20 million, while the remaining US$10.5 million was expected to come from property disposals.
The company has, however, indicated that selling the assets has “taken longer than expected”.
“The rights offer was successful and raised the full amount of US$20 million. However, the property sales have taken longer than expected to materialise, and as a result, the US$10.5 million funding has not yet been realised.
“Sale and purchase agreements on two of the properties are about to be signed, while offers on other three are being reviewed. Efforts to dispose of the other properties and improve liquidity continue,” Margaret Munyuru, the company secretary stated.
By August 2025, only US$7.3 million in offers was under consideration, with potential buyers proposing long-term leaseback arrangements. OK disclosed that two assets were close to being sold, with three more attracting firm interest.
The pledged properties include:
OK Mbuya Nehanda, Harare (US$3.21 million)
OK Glen View, Harare (US$1.83 million)
Birmingham Warehouse, Harare (US$3.7 million)
OK Gweru (US$2.7 million)
OK Malvern, Harare (US$1.42 million)
Harare Stand (Odar Township) US$720,000
Harare Stand (Salisbury Township) US$4.84 million
Borrowdale Stand, Harare (US$6 million)
These disposals form a critical part of the company’s recovery plan following a 53% drop in revenue to US$240 million in 2025.
OK Zimbabwe attributes the downturn to supply chain disruptions, exchange rate volatility, and increased competition from informal traders who offer USD cash advantages to suppliers.
The retailer owes suppliers US$24 million, and although partial settlement agreements were reached, OK Zimbabwe has said the prevailing trading terms “have not allowed adequate stock build-up”, particularly as suppliers increasingly demand upfront USD payments.
The company appealed to partners to support restocking efforts during the summer trading period.
“Engagements with suppliers continue to improve credit extension periods and to build up the range of stock available,” the company stated.
“We appeal to all our suppliers to work with us during the summer trading season-our success is your success!”
Operational pressures have also intensified due to persistent power outages and constrained foreign currency availability, distorting pricing and increasing costs.
Although overheads were reduced by 51%, the savings were outweighed by the steep decline in sales, leaving the business unable to fully cover expenses.
As part of restructuring measures, the group has 62 stores, of which 11 have already been closed, with three more pending closure.
Head office staff cuts and other cost-saving actions are expected to reduce expenses by a further 15% by December. OK also exited the Food Lovers Market franchise, writing off US$4 million in goodwill related to its Fresh & Green City operation.
The company said store optimisation is continuing, with Bon Marché Chisipite set to be relocated to a larger space as part of a complex expansion.
“Management is confident that some of the properties will be sold and the proceeds paid into the business soon. Staff training is continually underway to improve workers’ skills in their job roles.
“Customer service is at the heart of the training programmes as this will assist the Group, through its employees, to better compete for customer support and sales.
“The Group remains positive about the future and is fully supported by the Shareholders, with the Board of Directors and management working in concert for the recovery of the business,” the Zimbabwe Stock Exchange listed company said.
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