Edgars to remodel business
Edgars Stores Limited will continue to remodel its business as the listed clothing chain seeks to capitalise on opportunities that arise from the volatile economic environment.
The environment is characterised by limited foreign currency availability, exchange rate volatility and inflationary pressures that have eroded disposable incomes.
Among the opportunities the group will undertake include expansion of its geographic footprint as the group seeks to consolidate its market share and tap into new markets.
“Cost containment remains a focus area so as to ensure long term viability of the business.
“The group seeks to expand its geographic footprint through the opening of new stores in strategic locations. Smart merchandise procurement remains a key focus area to ensure that target margins are achieved without compromising the merchandise quality,” said chairman Thembinkosi Sibanda.
During the half year to July 10, 2022, the group opened new stores that is Jet First Street, Avondale and Gutu while Edgars Borrowdale relocated to a bigger and new-look store.
“We will continue to transform our customer experience through revamping our stores to world class standards, offering widened merchandise ranges at affordable prices and flexible credit terms,” said Sibanda.
During the half year period, total group units sold increased by 35 percent to 1,27 million from 0,94 million achieved during the same period last year.
Sibanda highlighted trading in foreign currency since April 2020 allowed the retail chains to improve stock assortments, which in turn has increased traffic in stores.
“Whilst a sizable portion of our cash sales are in foreign currency, we believe that further relaxation of foreign currency trading will go a long way in increasing our USD generation to fund imports,” he said.
The Edgars chain recorded turnover growth of 116 percent to $4,74 billion from $2,19 billion as the 532 000 units sold were up 55 percent above same period last year. The split between credit and cash sales was 55,7 percent and 44,3 percent.
Total sales for the Jet chain were $3,41 billion, which was 101 percent above the $1,69 billion achieved in the comparative period. The split between credit and cash sales was 51,1 percent and 48,9 percent respectively. Total Units sold for the period were up 28 percent from to 674 000.-businessweekly
