Edgars invests US$1.1m into Carousel
CLOUDINE MATOLA
Zimbabwe’s largest publicly traded clothing retailer, Edgars Stores Limited, has invested US$1.1m into its manufacturing arm, Carousel Manufacturing, as part of a strategic push to sustain and expand production capacity, Business Times can report.
The investment, disclosed in the group’s financial results for the 52 weeks ended January 4, 2026, underscores Edgars’ drive to boost output volumes, minimise material waste and strengthen cost efficiencies amid a challenging operating environment.
Group chairman Themba Sibanda said the capital injection is expected to reinforce the group’s vertically integrated model, which has increasingly become central to its resilience and profitability.
“The group invested US$1.1m in maintaining and expanding production capacity, primarily toward the cutting room solution. This investment is expected to enhance output volumes, reduce fabric waste and further improve cost efficiency, reinforcing the strategic importance of vertical integration within the group,” Sibanda said.
He added that the ongoing retooling of Carousel will play a pivotal role in improving manufacturing efficiencies while strengthening support to the group’s retail chains.
“Operationally, the retooling of Carousel will continue to enhance manufacturing capacity and efficiency, strengthening support to the retail chains and improving margin resilience. Smart procurement, optimal inventory planning and working capital discipline remain key priorities,” he said.
Carousel Manufacturing remains a key driver of group performance, delivering strong growth during the period under review. Units supplied to Edgars’ retail chains surged 47% to 448,000, up from 305,000 in the prior year, driven by improved production efficiencies and a firmer order book.
At group level, Edgars posted solid operational performance despite a constrained macroeconomic environment. Total units sold rose 19.3% to 2.38m, from 1.99m recorded in 2024.
Merchandise revenue increased by 12% to US$34m, up from US$30.5m in the previous year, reflecting improved trading execution, stronger customer engagement and enhanced product availability.
“Notwithstanding the constrained macro-economic environment, the group delivered a strong improvement in financial performance. Total units sold increased by 19.3% to 2.38m units from 1.99m in 2024. Merchandise revenue grew by 12.0% to US$34.0m from US$30.5m in 2024, reflecting improved trading execution, strengthened customer engagement and enhanced merchandise availability,” Sibanda said.
Profit for the year surged 139% to US$1.9m, from US$0.8m in 2024, highlighting the impact of operational efficiencies and improved sales volumes.
However, finance costs rose to US$3.0m from US$2.4m, reflecting increased funding deployed towards working capital requirements and strategic initiatives, including the Carousel upgrade.
The operating environment during the period remained volatile, characterised by currency shifts, rising operating expenses and subdued consumer spending, factors that continue to weigh on the retail sector.
