Listed retail giant, OK Zimbabwe Limited, says the return of its flagship promotion helped lift volumes by 48% in the quarter to June 30, 2021.
The OK Grand Challenge promotion was suspended last year due to Covid-19 pandemic.
“Sales volume grew by 48% over the same corresponding period in 2020, attributed to a recovery from more stringent prior year Covid-19 restrictive regulations and the success of the OK Grand Challenge promotion,” company secretary Margaret Munyuru said.
She added: “Revenue for the quarter grew by 49% in inflation adjusted terms. Volume performance was aided by a surge in aggregate demand across key product categories.”
The business environment for the quarter under review continued to be characterised by Covid-19- induced restrictions but these restrictions were less severe compared to the same period in the prior year.
Munyuru said product supply remained stable on the back of improved availability of foreign exchange liquidity accessed through the auction system by the supply partners for both local and imported merchandise.
OK Zimbabwe said inflationary pressures were stoked midway through the quarter as market players reacted adversely to the promulgation of SI 127 of 2021 which seeks to criminalise dual pricing that is based on discounted US$ prices relative to the official exchange rate.
Consequently, national and internally monitored inflation rates remained high in the quarter although experiencing significant reduction to the prior year inflation rates.
OK stores were adequately stocked during the quarter as supply partners moved timeously to fulfil growing demand.
She said towards the end of the quarter, the country experienced a surge in Covid-19 infections and to combat the pandemic, the authorities responded by further tightening the lockdown restrictions.
Consequently, business trading hours have been reduced from an average of 11 hours to 7.5 hours per trading day.
The general curtailment of mobility and economic activity impact disposable incomes and consumer spending.
Munyuru said the group remains committed to operating in a sustainable and responsible manner to ensure staff and customer safety.