Edgars plans to open more outlets
BUSINESS REPORTER
Edgars, a publicly traded clothing retailer, intends to expand by opening additional outlets in key locations as part of the group’s efforts to increase traffic and enhance revenue streams.
The initiative to open new stores aims to increase low sales in the central business disctrict units caused by the influx of secondhand clothing that is prohibited.
In a statement accompanying half year results, Edgars Chairman Themba Sibanda, said the company will provide low prices to entice more customers into the shop.
“The group seeks to expand its geographic footprint through the opening of new stores in strategic locations,” Sibanda said.
He added: “We will continue to transform our customer experience through updating our stores to world class standards, offering widened merchandise ranges at affordable prices and flexible credit terms. The operating environment will be impacted by the complex macro-economic factors.”
According to Sibanda, the management is still restructuring the company to take advantage of opportunities that present themselves in the extremely unpredictable business climate.
In its financial results for the six months to July 9, 2023, Edgars swung into a ZWL$1.5bn loss from a profit of ZWL$5.96bn reported in the previous year.
Revenue from retail goods as a whole was ZWL$32bn, down 18% from the previous year.
Total retail merchandise revenue amounted to ZWL$32bn representing a 18% decrease on prior year.
A significant portion of the sales are now being realised in United States dollars.
Total group units sold decreased by 14.8% to 1.09m from 1.28m compared to the same period last year.
Despite a fall in revenue and losses, Edgars had a sizable portion of cash sales in foreign currency and Sibanda believes that this proportion can be increased by applying regulatory policies regarding foreign currency trading in a way that is both favorable and consistent.
Sibanda anticipates that the intricate macroeconomic factors will have an effect on the operating environment.
He said the company’s recovery is predicated on better access to foreign currency through domestic sales to meet import requirements, a stable exchange rate, and slower inflation.
