Zimbabwe Stock Exchange (ZSE) listed diversified retail group, Simbisa Brands is set to spend US$19,3 million on opening 92 new shops in a latest development which will unlock employment opportunities for citizens.
Presenting an annual report this week, the group’s board chair, Addington Chinake said the investment will chew a huge amount of money.
“The group’s focus remains on growing our footprint with 92 new stores in the pipeline in FY22 at an estimated investment cost of US$19, 3 million. Of these stores, eight will be Drive-thru sites in line with increased focus on diversifying the Group’s customer service channels,” he said.
He said maintaining high standards of health and safety in the stores will remain a priority for the sake of both r customers and staff.
“As of the date of this report, restrictions on trading hours and sit-in service remain in place in our key markets, Zimbabwe and Kenya,” he said.
Chinake said the business is confident of a swift upturn in customer counts as restrictions are gradually relaxed as witnessed earlier in the just ended financial year saying the group will continue to invest in growing the Dial-a-Delivery business across all its markets leveraging on a refreshed DAD app, customised tech-enabled logistics management, call centre platforms and expanded delivery zones.
During the financial year of 2020, the group’s revenue increased by 108% made up of 60 % in Zimbabwe and 318 % in the region attributed to an increase of 34 % in average spending with customer counts increasing by 8%.
“In the region, excluding the impact of the Zimbabwe dollar exchange rate depreciation, revenue increased by 5% in USD terms from a 2% increase in customer counts and a 3% growth in average spend. Operating profit increased by 233% with operating profit margins firmer at 13%,” said Chinake.
He added that the group recognised a net monetary gain of $227 million (attributable to inflation hedging strategies in Zimbabwe anchored on reinvesting profits in new stores to hedge against inflation.