Home » Business » Meikles to Complete 10 Stores By Next Year

Zimbabwe Stock Exchange-listed group Meikles Limited’s retail arm, Meikles Mega Market expects to complete the opening of 10 stores across the country by the first quarter of next year. The retail arm, whose target is the lower end of the market, has already opened branches in Harare and Masvingo and has now set sight on Gweru, Mutare and Mabvuku among others. Meikles limited rolled out this initiative of establishing Mega stores to cater for the low income bracket.

In an interview with The Herald Business yesterday, Meikles Mega Market chief executive Mr Phillip Ellse said they have set sights on expanding the retail business as well as rolling out more projects to grow the holding company’s revenue base. “The move is part of the group’s strategies to boost revenue and unlock shareholder value. Already we have opened shops in the capital where we want to cater for all classes of the society and another branch was opened in Masvingo,” said Mr Ngorima.

“We are right on course to meet our target of 10 shops by the end of the first quarter of 2015. Our plans to open Mabvuku branch are at an aanced stage and we have already received our licence,” said Mr Ellse.

“We are eyeing the Gweru market and plans are now at an aanced stage and we should be opening in the first week of January next year. This new concept will service and support the lower end of the market.”

The retail group hopes to open more stores in other cities with the idea to bring products to the people as the company rolls out strategies to cater for workers who were almost retrenched at the department stores division last year. There has been rationalisation of the departmental stores together with a drive to create greater values in the group’s properties.

The move comes at a time when most Zimbabwean retailers are facing disposable income challenges due to an acute liquidity crisis.

In addition local retailers have been facing competition from cheaper products from China and South Africa mainly due to issue of prices. “Our mass market concept has been performing very well despite disposable income challenges faced by our consumers and we will not stop to invest on more stores across the country,” said Mr Ellse.

Last year Meikles Department Stores announced its intention to retrench about 55 workers a decision which was later reversed to give birth to Meikles Mega Market which later accommodated the workers.

Retail divisions of the company continue to encounter demanding environmental challenges particularly tight market liquidity conditions and depressed consumer expenditure.

Due to liquidity constraints, capital expenditure and working capital requirements the group continue to roll out new units to unlock shareholder value. Substantial funding requirements were put in place to make sure MMM becomes a great success in the highly competitive retail industry.

Mr Ellse said the group opened its first hair salon end of September this year.

Source : The Herald

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