By Business Reporter- Zimbabwe’s largest retailer, OK Zimbabwe, has shut down five outlets nationwide, citing a harsh trading environment and mounting financial pressures.

The closures come just weeks after rival retailer N Richards shuttered two stores in Harare, signalling deepening distress in the formal retail sector.

At the heart of OK Zimbabwe’s troubles is its inability to restock, with many of its stores running out of essential food items.

Suppliers, wary of local currency payments and unpaid debts, have cut off credit lines.

The retailer reportedly owes US$17 million and ZiG537 million in outstanding payments, with some suppliers withholding fresh stock until previous debts are cleared.

In an internal memo, OK Zimbabwe announced it would shut down Robson Manyika, Glen Norah, Kuwadzana Express, Mbare (all in Harare), Chitungwiza Town Centre, and Entumbane (Bulawayo). Another store is set to close in March 2025.

The closures will result in job losses, with hundreds of employees—mainly low-level staff—facing retrenchment starting March 31, 2025.

Affected workers have been offered severance packages, including one month’s salary per year served, three months’ notice pay, and outstanding leave payments.

However, sources say it remains unclear whether employees have accepted these terms.

Company executives attribute the crisis to Zimbabwe’s volatile economic environment, particularly its currency challenges.

OK Zimbabwe acquired goods on credit in US dollars but is struggling to settle payments due to cash flow constraints.

The company’s woes were exacerbated by last year’s currency turmoil, which led to the reintroduction of the Zimbabwe Gold (ZiG) currency in April.

Despite some stabilization, the retailer has yet to recover.

Another major challenge is competition from informal traders, who have gained a market advantage by offering lower prices, paying cash in US dollars, and avoiding taxes and regulatory costs.

The Confederation of Zimbabwe Retailers (CZR) has called on President Emmerson Mnangagwa to intervene, warning that continued closures threaten the survival of the formal retail sector.

“Formal businesses are struggling against an unfairly competitive informal sector that does not pay taxes. The government must act,” CZR president Denford Mutashu said.

OK Zimbabwe has also tied up capital in land acquisitions for future stores, including sites in Mutoko, Southly Park (Harare), Guruve, Kadoma, and Gweru—funds that could have helped stabilize operations.

CEO Maxen Karombo declined to comment when contacted, requesting questions via email but failing to respond.