|Meikles streamlines department stores|
|Friday, 15 June 2012 12:00|
MEIKLES Limited is in the process of streamlining its Thomas Meikles Stores to offer limited service.
Thomas Meikles Stores operates department stores across the country under the Barbours, Greatermans and Meikles brands.
In the group’s audited financial statement for the year ended March 31, 2012, Meikles Limited group chairman Mr John Moxon said the department stores will no longer offer the full range of services.
“There has been a branding adjustment in recent months and the stores will no longer attempt to operate the full range of department that they have had in the past,” he said.
He added that they had reduced the margins on some merchandise in an effort to reduce the quantum of old stock.
“This division still has the remaining legacy issue. Certain merchandise although saleable, can only be sold at reduced margins,” said Mr Moxon.
At the same time Mr Moxon said a number of Pick n Pay stores will be opened in four cities — Harare, Bulawayo, Mutare and Gweru — as part of TM Supermarkets’ refurbishment and rebranding programme.
He said the introduction of the new stores would be carried out in the new financial year.
“A total of six branches have been earmarked for refurbishment in the new financial year and will incorporate rebranding of some stores to Pick ‘n’ Pay. These stores are in Harare, Bulawayo, Mutare and Gweru,” he said.
The company said the Kamfinsa branch, which has been reconstructed, will be the first Pick ‘n’ Pay outlet to be launched by the end of this month.
The Kamfinsa Pick ‘n’ Pay will also include the brand’s accompanying clothing and liquor outlets.
Meanwhile, Mr Moxon said the group posted a loss after tax of US$3,4 million for the year ended March 31 compared to a profit of US$6,1 million in the previous year.
During the period under review, the group’s revenue grew to US$354 million from US$330 million largely driven by its retail division as Meikles Limited seeks to consolidate its market share through the rebranding.
He said their agricultural division suffered from a severe frost last winter and an unusual adverse weather pattern in the summer.
“Losses that arose and were accounted for in the second half of the year as a direct result of the adverse weather amounted to US$2,9 million in direct revenue and US$2,3 million loss of profit.”
He said Tanganda was focusing on improving tea yields and quality adding that a major plantation development programme would be completed by 2014.
On conclusion Tanganda would have planted 450 hectares of avocado, 300ha of coffee and 700ha of macadamia.
“There is evidence that there is growing demand for tea in the world and Tanganda’s tea prospects remain promising,” he said.
The Zimbabwe Stock Exchange-listed group is in negotiation with various financiers regarding the injection of “significant funding”.