OK Zimbabwe has rehired former CEO Willard Zireva as part of a strategic restructure, following the closure of five branches due to economic difficulties. The company is tackling significant stock shortages, executive dismissals, and financial pressures. Amidst recommendations for urgent intervention, new leadership is expected to implement recovery plans and improve supplier relations.
OK Zimbabwe has reappointed Willard Zireva as its chief executive officer, a role he previously held from 2001 to 2017. His return coincides with the company’s strategic review aimed at enhancing operational efficiency and driving sustainable growth amidst a challenging economic landscape. In recent developments, OK Zimbabwe announced the closure of five branches due to a tough trading environment worsened by economic factors like exchange rate distortions and high operating costs.
The closures affect four outlets in Harare, including Glen Norah, Kuwadzana 5, Chitungwiza Town Centre, and Robson Manyika Street, as well as one branch in Bulawayo’s Entumbane suburb. Furthermore, the company dismissed three top executives: former CEO Maxen Phillip Karombo, Chief Financial Officer Phillimon Mushosho, and Supply Chain Director Knox Mupaya due to business performance issues. To stabilize operations, OK Zimbabwe has appointed former CEO Alex Edgar Siyavora as CFO and Muzvidzwa Richard Chingaira as the new supply chain director.
The new leadership is tasked with implementing a strategic recovery plan over the next six months while searching for permanent replacements. OK Zimbabwe has faced difficulties restocking its branches, largely due to the introduction of the Zimbabwe Gold (ZiG) currency, which has disrupted supply chains and affected pricing structures. In late 2024 and early 2025, the retailer experienced significant stock shortages, with daily availability levels dropping to about 50% of normal inventory levels.
These stock shortages were attributed to limited supplies from manufacturers who often require payments in foreign currency amidst ongoing inflation and economic uncertainty. A recent trading update revealed a 36% decline in sales volumes in the last quarter compared to 2023. Despite a 10% year-to-date growth in volume, revenue remains under pressure from decreased sales and increasing debts.
The company has reported that US dollar sales occasionally represented only 20% of total revenue, which has strained creditor balances predominantly in US dollars. While the Reserve Bank of Zimbabwe has minimized the impact of economic conditions on retailers, attributing challenges to management failures, the Confederation of Zimbabwe Retailers contends that external factors like taxation and exchange rate distortions are significant impacts. CZR President Denford Mutashu warned, “If urgent interventions are not implemented, we risk a complete collapse of the formal retail sector, leading to mass job losses, declining tax revenues, and further economic instability.”
In response to these challenges, OK Zimbabwe has begun adopting alternative procurement models, such as structured stock supply arrangements with third parties, to mend supplier relations. Additionally, financial institutions have stepped in to offer short-term funding solutions to facilitate restocking efforts.
OK Zimbabwe is undergoing significant leadership changes and strategic restructuring in response to economic challenges, including branch closures and stock shortages. The reappointment of Willard Zireva aims to steer the company towards recovery, while new executive appointments and alternative procurement models are being implemented to combat supply chain disruptions. The broader retail sector also faces ongoing pressure from economic conditions and increased competition from the informal market.
Original Source: www.zimeye.net
