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Business Reporter

Retail giant, OK Zimbabwe has embarked on an ambitious refurbishment and expansion exercise to regain market share as competition on the local retail sector continues to mount. The retail landscape has seen a significant change since 2010 characterised mainly by the grand entry of South African retail giant Pick n Pay now TM/Pick n Pay into the local market.Meikles Limited-owned Meikles Mega Market has also chewed into the retail giant’s market share while N Richards Wholesalers which used to be a giant in the southern region has since started rolling out more branches in the Northern region.

Botswana’s retail chain Choppies also remains a competitor to reckon with in the retail sector. The sector has also seen retailers like Metro Peech becoming of a force to reckon.

In an interview on the sidelines of the company’s analyst briefing this week, OK Zimbabwe chief executive Willard Zireva admitted that competition in the retail sector was mounting hence the need for the retail giant to upgrade services.

“On refurbishments, we are basically refurbishing one major store and then two stores and the budget will be about $2 million because the two of them are partial refurbishments.

“Then we have two stores which are expanding into new premises and those will cost about $1 million in terms of expenditure and we have got the OKmart which will not be as big as the ones we had before and those will probably cost around $1,5 million,” said Mr Zireva.

About $5 million will be invested in the expansion and refurbishment exercise while a consultancy company was engaged as part of OK Zimbabwe’s quest to improve services.

A total of $1,2 million was paid for the services of the consultancy company and OK Zimbabwe management is convinced of achieving positive results.

Full refurbishment is currently ongoing at OK First Street while partial refurbishments are being carried out at OK Kwekwe and Gwanda.

A new OKmart will be opened in Gweru and Victoria Falls while OK Houghton Park and OK Chipinge will be moved into larger premises.

New OK stores were opened in Zvishavane and a new OK Mart in Mutare.

The expansion of the OK Mart chain is expected to continue as soon as resources permit, as will the refurbishment program.

Mr Zireva said the retail giant will continue setting up instore bakeries, which now total 32 while back off bakeries current sits at eight.

“The bakeries are an ongoing project. We budgeted to continue with instore bakeries in all the outlets which have capacity to house the bakeries.

“At the moment when buying outside we make about 10 percent but when doing it ourselves we make over 20 percent therefore setting up instore bakeries makes a business sense to us,” said Mr Zireva.

Since 2010 OK Zimbabwe maintained its position as the leading retailer in Zimbabwe but its position has since come under threat following the entry of Pick n Pay and Choppies.

However despite the competition, OK Zimbabwe still boasts of the largest promotion in the country, The OK Grand Challenge.