HARARE – Listed Meikles Limited (Meikles) is venturing into the hair and beauty industry, as the group broadens its revenue streams.
Zimbabwe hosts a multi-million dollar hair and cosmetics industry, with locals spending $13 million on products, care and maintenance in the 18 months to July 2014, according to the country’s statistics agency.
“We view this as a rapidly growing market,” Meikles said.
The group said that it has “the capacity to establish businesses in spaces that are not fully utilised by TM Supermarkets and Meikles Mega Market, the object being to secure beneficial occupation with our various properties”.
Mark Wood, a Meikles director, added that the move is also targeted at utilising unused space in the group’s retail units, with the first beauty salon set to open this month.
“The $4 million being injected into the retail division will also contribute to the new hair venture,” he said.
The funds are part of a repayment of Meikles’ $90,8 million debt by the Reserve Bank of Zimbabwe.
The group expects the beauty and hair saloons to make an immediate impact and contribute positively to profits and cash flow.
Others salons are set to be launched before year-end.
“These developments will ensure that by end of the calendar year, Meikles retail division will be the largest retailer in terms of sales in Zimbabwe,” the group said.
As part of expansion plans, the group will also channel funds into its retail division.
The fresh capital injection will see its retail division — comprising Meikles Stores, Barbours and Meikles Mega Market — grow its market share and return to profitability in the second half of the year.