By Melody Korongwe
The closure of Food Lovers Market outlets in Borrowdale and Avondale by the end of June 2025 has ignited growing concerns over the health of OK Zimbabwe, the country’s largest retail group.
This move is part of a larger restructuring effort aimed at rationalising operations amidst mounting operational and financial pressure.
According to company secretary Margaret Munyuru, the shutdown of the two Harare branches is a strategic pivot.
“This is part of a broader corporate restructuring thrust that focuses our resources on core operations and optimizing performance,” she said.
The decision also marks OK Zimbabwe’s withdrawal from its Territorial License Agreement with the Food Lovers Market brand, which previously allowed exclusive operation within Zimbabwe.
The closures highlight deeper turmoil within the company. Zimbabwe’s deteriorating economy—with soaring inflation (92% as of May), erratic power supplies, and volatile exchange rates—has weakened consumer spending and inflated operational costs.
These economic headwinds have especially burdened high-end retail formats like Food Lovers Market.
Industry analysts view the closure as more than a cost-cutting measure.
“This reflects a business under significant distress. “OK Zimbabwe needs a transformation strategy that aligns with today’s market dynamics—not just tactical changes, “said independent analyst Tendai Chakamba.
Indeed, the group’s financial woes have been building. Empty shelves, delayed deliveries, and growing customer frustration have become more common.
Though the company launched a US$30m capital raise and restructured leadership earlier this year, tangible results have yet to materialise.
Critics argue that OK Zimbabwe misjudged the market. Food Lovers Market was designed to attract upper-middle-income consumers with premium offerings, yet most Zimbabweans now prioritize essentials.
“Fresh produce and imported goods don’t resonate with a customer base focused on mealie-meal and cooking oil,” a retail consultant noted.
Operational inflexibility may have also played a role. Sources suggest the franchise model imposed additional costs that strained OK Zimbabwe’s already thin margins.
In response, the company has begun offering significant in-store discounts to clear stock and committed to settling all supplier obligations.
Munyuru reassured stakeholders, “We remain committed to OK Stores, Bon Marché, and OKmart brands, which continue to serve customers nationwide.”
Still, questions remain whether the remaining outlets can compete in an economy increasingly dominated by informal markets and USD-based transactions.
With consumer habits evolving rapidly, the company’s long-term survival depends on more than restructuring—it requires innovation and strategic repositioning.
The closure of the Food Lovers stores is not merely symbolic; it marks a retreat from an ambitious retail vision. Whether OK Zimbabwe can recover and redefine itself will depend on how boldly it adapts to Zimbabwe’s shifting retail landscape.
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