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Michael Tome Business Reporter
LISTED clothing retailer and manufacturer, Edgars Stores, says growth in foreign currency-denominated sales has permitted its retail chains to improve on stock varieties, leading to increased traffic to its stores.
In the 26 weeks period to July 10, 2022 Edgars’ total units sold increased by 35 percent to 1, 27 million compared to the same period last year.
The split between credit and cash sales was 53,8 percent and 46, 2 percent, respectively.
Total retail merchandise revenue jumped 124 percent to $7, 97 billion.
Edgars recognised the positive effect of the prevailing stable exchange rates, which the retailer had spurred the group’s recovery in the period under review.
The relaxation of Covid-19 restrictions, Edgars said, and the subsequent increase in economic activity had also helped improve the operating environment compared to the same period in 2021. Resultantly, the Edgars chain recorded turnover growth of 116 percent to $4, 74 billion from $2,19 billion after 532 000 units sold were up 55 percent above the same period last year. The split between credit and cash sales was 55,7 percent and 44,3 percent, respectively.
“Trading in foreign currency since April 2020 has allowed our retail chains to improve stock assortments, which in turn has increased traffic in our stores. Whilst a sizeable portion of our cash sales are in foreign currency debtors book relatively health currency, we believe that further relaxation of foreign currency trading will go a long way in increasing our US dollar generation to fund imports,” said Thembinkosi Sibanda, Edgars Stores group chairman.
Total sales for the Jet chain were $3, 41 billion, representing 101 percent growth 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 to 674 000 as the group opened new stores at Jet First Street, Avondale, and Gutu with stock covers closing at 18,68 weeks.
Edgars chief executive officer Tjeludo Ndlovu said the chain realised better cash sales than the comparable period last year attributable to growth in marketing endeavors initiated by the chain in the period.
“2022 we did recover some more in cash sales to 45, 9 percent from 38,8 percent this is because of promotions that we held in our stores to promote cash sales,
“At Jet credit sales increased, our observation is that a lot of civil servants did migrate to jet chain as you know Jet is skewed towards the lower end of the market which they opted for because of their constrained income,” said Ndlovu. The financial services segment recorded gross retail debtors’ book closed the period at $2,80 billion, up 345 percent from $629 million in the comparative period last year.
Active account growth increased 6,5 percent to 128 000 attributed to various account drive initiatives. Club Plus Microfinance loan book closed at $299 million representing a 293 percent increase from prior year. Asset quality remains positive with over 74,5 percent of the book being in current. At Carousel Manufacturing, turnover of $309,8 million was up 237 percent over prior year although total units sold were down 7 percent.
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