The chairman, Eric Kahari, said a decision not to renew contracts of some workers was taken in response to an acute shortage of merchandise for sale.
The government crackdown, code-named Operation Dzikisa Mutengo (Operation Reduce Prices) saw Zimbabweans taking advantage of the bargains to hoard basic goods, leaving most shop shelves empty and manufacturers unable to operate.
OK’s main competitor, TM Supermarkets, recently retrenched about 300 workers due to continuous unavailability of goods, while leading clothing retail chain Edgars Stores sent scores of workers home after closing some of its shops in Bulawayo in October.
Kahari said OK Zimbabwe’s operating losses jumped a staggering 1 120 percent to Z$1.2 trillion during the half-year to 30 September compared to the same period last year as revenue growth failed to keep pace with cost increases. The group has had to shelve plans to invest in new outlets and other capital expenditure. – ZimOnline
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