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.

Copyright New Zimbabwe. Distributed by AllAfrica Global Media (allAfrica.com)., source News Service English