By Business Reporter-OK Zimbabwe has rehired its former chief executive officer, Willard Zireva, who previously led the company from 2001 until his retirement in 2017.
His return comes as the 83-year-old retailer embarks on a strategic business review and restructuring to enhance operational efficiency and drive sustainable growth in a challenging economic environment.
The company recently announced the closure of five branches, citing a tough trading environment exacerbated by exchange rate distortions, low US dollar sales, and unsustainable operating costs.
The affected stores include four outlets in Harare—Glen Norah, Kuwadzana 5, Chitungwiza Town Centre, and Robson Manyika Street—as well as a branch in Bulawayo’s Entumbane high-density suburb.
The retail giant fired three top executives: former CEO Maxen Phillip Karombo, Chief Financial Officer Phillimon Mushosho, and Supply Chain Director Knox Mupaya due to business failure.
OK Zimbabwe appointed Alex Edgar Siyavora, another former CEO, as CFO, and Muzvidzwa Richard Chingaira as the new supply chain director to stabilise operations.
The new leadership team is expected to implement a strategic recovery plan over the next six months while the company searches for permanent executive replacements.
OK Zimbabwe has struggled to restock its branches over the past year, a challenge compounded by the introduction of the Zimbabwe Gold (ZiG) currency, which has disrupted supply chains and pricing structures.
The retailer experienced significant stockouts in late 2024 and early 2025, with daily availability levels plummeting to around 50 percent of normal stocking levels.
The company attributed these shortages to restricted supplies from manufacturers and distributors, many of whom demand payment in foreign currency due to inflationary pressures and economic uncertainty.
A recent trading update revealed a 36 percent decline in volumes during the last quarter compared to the same period in 2023.
Despite a year-to-date volume growth of 10 percent, revenue has suffered due to falling sales and mounting debts.
Outstanding creditors’ balances, predominantly denominated in US dollars, have placed additional strain on the company, which at times reported US dollar sales as low as 20 percent of total revenue.
The Reserve Bank of Zimbabwe (RBZ), however, has downplayed the impact of the economic environment on retailers, suggesting that many of their challenges stem from poor management decisions rather than macroeconomic factors.
The Confederation of Zimbabwe Retailers (CZR) has pushed back against this assertion, arguing that exchange rate distortions, excessive taxation, and a rising informal sector have made compliance increasingly difficult for formal retailers.
“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,” warned CZR President Denford Mutashu, represented by acting CEO Innocent Marimo during a recent presentation to the Tripartite Negotiating Forum Economic Cluster.
In response, OK Zimbabwe has adopted alternative procurement models, including structured stock supply arrangements with third parties to restore supplier relationships. Financial institutions have also stepped in with short-term funding facilities to support restocking efforts.