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OK Zimbabwe, one of the country’s major retail chains, ensures that its exchange rates are regularly updated to reflect the prevailing rates at the time of customer transactions.
In response to a customer’s inquiry regarding pricing discrepancies, OK Zimbabwe clarified that the rate displayed in the shop may not always align with the rate used at the checkout counter, as exchange rates fluctuate throughout the day. Queried the customer:
<blockquote>
I am a loyal OK customer, where everyone is a winner. I have a question. Would you care to explain your pricing disparities. In every branch of yours there is a chart displaying the USD/ZWL exchange rate.
Your prices are marked in USD. Paunosvika patill uchihibhadhara with ZWL you would naturally expect to pay using the displayed rate, asi hazvisirizvo zvinoitika, hameno language inotanga kutaurwa and you pay using a different rate, I was made to understand that the rate differs from product to product. Ndizvo here?
Is it possible to be transparent about the cross rate formula? Hamukwanise kuita zvinoitwa kuPick n Pay, displaying both USD and ZWL price?
</blockquote>
OK Zimbabwe’s response shows that the retail chain changes prices constantly in line with the movement of the exchange rate. It said:
<blockquote>
Our rates are updated based on the prevailing rates at the time of your transaction. However, the exchange rate might change in our system before we can update our displays.
</blockquote>
Another customer said he has stopped shopping at OK because one doesn’t know the price of a product until one gets to the till.
The depreciation of the Zimbabwe dollar can lead to exchange losses for retailers when converting foreign currency purchases back to the local currency. This affects the overall profitability of retailers.
Retailers are, therefore, forced to adjust prices frequently to keep up with rising costs.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

OK Zimbabwe Clarifies Pricing Disparities

An economist has accused Finance and Economic Investment Ministry’s Permanent Secretary George Guvamatanga of promoting the cannibalisation of formal businesses after he dismissed claims by owners of formal retailers that informal shops (tuckshops) are killing their businesses.
The economic commentator, Tinashe Murapata, said the retail and wholesale sector is the largest contributor to tax through VAT and the electronic transfer tax. He said:
<blockquote>
The perm sec, in his apoplectic misfiring, was invariably accusing himself and Treasury of mismanaging the economy.
Worse, instead of protecting the guys who believed in his policies to the letter, he threw them under the bus.
The retail and wholesale sector is the largest contributor to tax through VAT and 2% electronic transfer tax.
They act as legal agents to the Treasury. Yet, today, there are clandestine operations that avoid paying VAT at all.
What then does it say about the Treasury promoting the cannibalisation of formal businesses? Businesses that on cue have followed what the President wants?
The banking sector has been reduced to a miserable US$1.2bn lending activity. 25% of its GNU highs. US$2bn deposits outside the banking sector.
The truth is that the Perm Sec is diverting attention. Government of Zimbabwe’s policy prescriptions told the patient to jump off a bridge. Unfortunately, the patient followed instructions.
</blockquote>
Guvamatanga made the controversial comments at the Zimbabwe Economic Development Conference (ZEDCON) in Victoria Falls.
Last week, one of the country’s biggest retail chains, OK Zimbabwe, said “tuckshops” are killing large-scale retailers as they are forced to price their products using the official exchange rate which makes the goods very expensive in US dollars.
But Guvamatanga contended that big retailers should come up with innovative measures and adapt to economic dynamics. He said:
<blockquote>
How do you complain about a tuck shop that pays five times more per square meter rent, does not have access to credit, and buys all the goods in cash right, because they do not have any access to credit?
Possibly they do not have better systems than what you have. And they do not have access to the cheaper foreign currency, they have to go to the parallel market.
You then come and say that you’re not able to compete because you have been taken out of business by informal tuck shops.
If I were on the board, I would fire you because you will be useless management. I would fire you.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Govt Promoting The Cannibalisation Of Formal Businesses - Economist

Large-scale retailers in Zimbabwe are struggling to remain viable due to competition from “tuck shops”, informal shops that sell exclusively in US dollars and do not pay taxes to the Government, <a href="https://newzwire.live/not-so-ok-the-forced-death-of-zimbabwes-big-supermarkets/">reported newZWire</a>.
According to one of the country’s biggest retail chains, OK Zimbabwe, unregulated informal shops now dominate the retail space.
While larger supermarkets are full of goods, customers prefer to buy products from tuckshops which offer competitive prices compared to supermarkets.
Big supermarkets are forced by the government to price their stock using the official exchange rate, making their prices exorbitant in US dollars.
Added to that, larger supermarkets also pay taxes, rates, and other regulatory fees.
Manufacturers and suppliers now sell their goods directly to informal traders who pay in USD upfront.
OK Zimbabwe, which has over 60 outlets nationwide, says most supermarkets battling for survival.
In a press advertorial for its “DollarDeal” promotion, which seeks to drive sales by offering customers bargain deals for US$1, OK Zimbabwe said:
<blockquote>
It has been an interesting watch as perhaps; most formal retailers now are battling for survival. The rise of the unregulated informal operators, who are mostly arbitraging, has caused more headaches than good for the formal guys like OK Zimbabwe, TM Pick n Pay, Gain Cash &amp; Carry and so many more. This has created a whole new spate of dangerously unhealthy competition.
… In instances where some are paying taxes, some are not. Where some are using the regulated bank exchange rate, some are not, hence causing artificial or distorted price points in the stores.
The informal retailer is infamously using the black-market rate and marks the same products downwards causing “forced death” on the formal retailer.
</blockquote>
The retail chain urged the Government to create a level playing field to enable the formal retailer to survive through policy intervention.
It warned that failure to create a level playing field will result in company closures and the loss of jobs.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Tuckshops "Killing" Zimbabwe's Big Supermarkets

The OK Zimbabwe Group celebrated the opening of its first-ever Bon Marché store outside of Harare this past weekend in Marondera.
The opening celebrations, hosted within the town located 60km outside of Harare, included supplier promotions, free toll gate passes, product sampling and several US$20 vouchers issued to lucky individuals.
The Bon Marché Marondera store becomes the 9th supermarket within the company’s flagship high-end Bon Marché brand offering and the first new store built outside of Harare’s affluent Northern suburbs.
OK Zimbabwe designed the new look store using the latest thinking in retail architecture, which emphasises natural light, sustainability and quality finishing.
Juliet Ziswa, OK Zimbabwe’s marketing director, who was the lead director in the new format store design, said:
<blockquote>
We began with the shopper in mind and built our store around international trends that make shopping more pleasurable and enjoyable. The store, for example, has very wide aisles to accommodate family shopping missions, it optimises the use of a lot of light throughout the store, to accentuate the freshness of our fruit and vegetable range, and we have built sustainability into the design by using glass door coolers throughout the shop for better energy efficiency.
</blockquote>
OK Zimbabwe recently acquired the franchise rights to Food Lovers Supermarkets in Zimbabwe.
The expansion of Bon Marché into non-traditional geographies signals a deliberate and clear intention by the group to diversify its income from the core middle market, cornered by its eponymous OK Stores.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

OK Zimbabwe Opens First Bon Marché Store Out Of Harare

OK, Zimbabwe has responded to an outcry over its prices. In a statement released on Thursday, the giant retail chain said:
<blockquote>OK, Zimbabwe is grateful for the support and patronage of all our customers. Your support and patronage, particularly in these difficult times, is especially appreciated.
We are proud to be the leading Zimbabwean retail and supermarket chain and we will strive to ensure that you, our customers, will continue to get value from our stores.
The last month of June has been turbulent as we received numerous price increases from our supplier base as they chased the exchange rate movement.
We welcome the new SI142, which we believe will stabilise prices and allow us to deliver the good prices and value you have always expected and enjoyed from us.
We have always received good support from our supplier partners. Accordingly, we have engaged them and some have started to moderate prices in response to SI142.
We will continue this engagement to ensure that we, together with them, deliver the value you have always enjoyed.
We appreciate and applaud the feedback we receive from you our customers. We have a number of platforms available for easy access, communication and feedback.
We would like to assure you that we will continue with our relentless efforts to ensure that all our stores nationwide remain reasonably stocked.</blockquote>
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FULL TEXT: OK Zimbabwe Addresses Customers Over Its High Prices

Leading supermarket retailer OK Zimbabwe Limited has posted a profit of $16,6 million for the full year ending 31 March 2018. This was a massive 174,6 percent increase from the $6.1 million in the previous period. In a statement, group chairperson, Mr David Lake said,
<blockquote>Revenue for the year improved by 23,4 percent to close the reporting period at $582,9 million having increased from $472,4 million in the prior year. Profit before tax of $23,6 million was 165,6 percent up on prior year’s $8,9 million, while profit after tax increased by 174,6 percent to $16,6 million from $6,1 million in prior year.
The cost of sourcing foreign currency had the inevitable effect of increasing prices, with Zimstat reporting year on year inflation increase of 0, 21 percent.</blockquote>
More:<a href="http://www.chronicle.co.zw/ok-zim-posts-16-million-profit/" rel="noopener" target="_blank"> Chronicle</a>

OK Zim Profit Up 170 Percent

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