Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
EDGARS Stores Limited is steadily reclaiming its position in Zimbabwe’s highly competitive retail sector after recording strong growth in sales volumes during the first quarter ended April 5.
Improved merchandise assortments, enhanced customer engagement and a growing shift towards cash sales underpinned the performance.
The clothing retailer posted a 43 percent increase in group sales volumes to 543 100 units during the quarter, compared to 379 535 units recorded in the corresponding period last year.
This signals a significant recovery in customer traffic and demand across its retail operations.
The performance comes at a time when many retailers continue to grapple with subdued consumer spending, liquidity constraints and heightened competition from the informal sector.
In a trading update for the quarter, group chief executive officer Mr Sevious Mushosho said the company’s growth was driven by improved merchandise assortments and customer engagement initiatives.
“Sales volumes increased by 43 percent, from 379 535 units in the prior year’s first quarter to 543 100 units in the current period. This growth was driven by improved merchandise assortments and customer endorsements of the product range and overall offering,” he said.
This demonstrates that Edgars’ turnaround strategy is beginning to yield positive results as the company strengthens its value proposition while improving operational efficiencies.
Edgars Chain sales volumes increased by 35 percent to 172 320 units from 127 230 units recorded in the comparable period last year.
The flagship brand also continued to benefit from a notable shift in customer purchasing patterns towards cash transactions.
“The sales mix between credit and cash shifted notably towards cash, with credit sales accounting for 54 percent (2024: 66 percent) and cash sales increasing to 46 percent (2024: 34 percent),” said Mr Mushosho.
Jet Stores, which has emerged as a key growth driver within the group, registered an even stronger performance, with sales volumes rising 37 percent to 302 054 units from 220 204 units in the prior-year period. The chain similarly experienced a migration towards cash purchases, reflecting changing consumer preferences and tighter credit conditions.
“Similar to Edgars Chain, the sales mix between credit and cash sales observed a shift towards cash sales closing at 56 percent (2024: 62 percent) and 44 percent cash sales (2024: 38 percent),” he said.
The group’s manufacturing unit, Carousel Manufacturing, also recorded positive growth, with output increasing 0,8 percent to 95 184 units from 94 403 units achieved during the same period last year.
Management expects production volumes to rise substantially in the coming months as summer production commences in June.
The financial services division continued to provide support to group earnings, with revenue rising 11 percent compared to the same period last year to US$1,5 million. “The increase was underpinned by an improved debtors book which grew to US$11,2 million from US$9,8 million in the comparative period, 14 percent growth on the back of increased credit sales,” he added.
The company noted that the operating environment remained relatively stable during the quarter, supported by continued exchange-rate stability under the willing-buyer, willing-seller foreign exchange framework and easing inflationary pressures.
Looking ahead, the retailer remains cautiously optimistic, citing the possibility of improved agricultural output supporting economic activity while acknowledging continued pressure from utility costs, consumer demand constraints and input cost increases.
“Management will continue to focus on working capital discipline, cost containment, merchandise competitiveness, selective store expansion and maintaining prudent credit risk management across the Group’s operations,” he said.
The latest trading performance suggests that Edgars is gaining momentum in its recovery journey, strengthening its foothold in the formal retail market and positioning itself for sustained growth amid a gradually improving operating environment.
