Edgars re-launches ‘Express Chain’ for low-end market
AS part of efforts to cater for the low-end market and boost business volumes, Victoria Falls Stock Exchange (VFEX)-listed clothing retail chain, Edgars Stores Limited, has revealed plans to re-introduce its “Express Chain” unit that will deal with less expensive products.
The move comes on the background of an influx of cheap imported clothing and second-hand garments across cities and towns, which are piling pressure on domestic sales for established clothing industries.
Popularly known as “koKhothama,” the cheap second-hand clothing dealers are a common phenomenon in Bulawayo and often a hive of activity due to their give-away prices. These normally display their products on streets and pavements where they largely cater for the low-income market with products ranging from as low as US$1.
Responding to written questions, Edgars group chief executive officer, Mr Sevious Mushosho said the larger share of the Zimbabwe’s clothing market was now serviced by the informal sector through flea markets, China shops, runners, car boot dealers and various boutiques. These largely trade imported products from places like China, Tanzania, UK and Bangladesh.
Mr Mushosho said, Edgars has moved into the space to try and bridge the shortcomings faced by players in the low-end market through local production of good quality products, meeting proper size curves and meeting local market specifications.
“As Edgars group, we have an opportunity to service this segment through the Express Chain. We are excited about this re-launch and its positive benefits,” he said.
“Strategically, this is a revenue growth opportunity for the group.”
Mr Mushosho said the Express Chain will provide customer satisfaction, adding that the business has already developed a data base of fits and sizes of customers to ensure their needs are met.
He said the re-introduction for the Express Chain will promote the creation of local employment through the supply chain. Mr Mushosho said most of the merchandise for this new initiative will be sourced from local suppliers.
“By providing new and affordable clothing in decent shopping environments, this will improve the dignity of the citizens,” he said.
Mr Mushosho said the Express Chain unit will also dress the whole family with its wide assortment for all members of the family, looking at basket size cap of about US$10.
He said the Express Chain will be a cash only department, with a wide network of stores covering growth points, towns, cities and downtown.
“We intend to open 10 stores this year, with plans to expand to 50 stores in the next five years,” said Mr Mushosho.
Edgars Stores Limited, operates in the retail clothing sphere, footwear, textiles and accessories in Zimbabwe and runs six segments — Edgars Stores Retail, Jet Stores Retail, Manufacturing Carousel, Micro Finance Club Plus, Corporate Head Office and Financial Services.
The company also provides micro-finance loans to the lower–to middle-income customer group.
Meanwhile, despite relocating its headquarters from Bulawayo to Harare, Edgars Limited has made a significant investment in the industrialisation of Bulawayo, investing approximately US$1 million in new equipment and creating employment opportunities for 700 people in the city. —chronicle
