Online Reporter
Nelson Gahadza
Business Reporter
VICTORIA Falls Stock Exchange (VFEX)-listed Edgars Limited sales volume increased 3,2 percent to 877 411 units in the half-year to July 6, compared to the same period last year, driven by growth across its stores.
Group chief executive officer Mr Saviours Mushosho, in a trading update, said the flagship Edgars Stores contributed 2 percent to the growth, while the group’s Express and Jet chain stores contributed 1 percent and 0,28 percent, respectively.
“The margins firmed 1,1 percent during the period on the back of reduced markdowns (down 50 percent) and smart procurement efforts focused on bringing in high-quality merchandise that sold at competitive prices compared to last year.
“Management has continued its efforts towards ensuring that fresher, high-quality and more competitively priced merchandise is available in-store,” he said.
Mr Mushosho said the segmented retail propositions of the group were being reviewed continually to ensure that the respective offerings effectively meet the needs and requirements of our customers.
The group plans to pursue identified opportunities where merchandise execution can be improved or new ones emerging.
“Smart merchandise procurement and optimal inventory planning remain key focus areas to ensure an optimal merchandise cycle that yields targeted margins without compromising the merchandise quality. Flexible credit offerings will be maintained to stimulate increased spending,” he said.
Mr Mushosho highlighted that management will further retool the manufacturing unit Carousel to underpin increased production and improve operational efficiencies to better support the retail chains.
At the same time, the group intends to continue expanding its geographic footprint through the opening of new stores in strategic locations.
Edgars added three Express Stores during the review period, and a further seven outlets are targeted before the close of the FY2025 financial year.
“The business will make further investments in backup solar power to optimise operational costs, improve system uptime and enhance customer experience,” said Mr Mushosho.
In terms of retail performance, revenues for the Edgars Chain increased by 3 percent to US$7,9 million in the first half of the year, compared to a 6 percent decline recorded during the same period last year.
Sales volumes declined by 1 percent, from 375 099 units in the first half of the prior year to 371 368 units in the current first half.
“The sales mix between credit and cash sales remained relatively stable compared to the prior year’s first half, with credit sales contributing 64 percent from 63 percent in 2024 and cash sales accounting for 36 percent,” said Mr Mushosho.
Interim period revenues for the Jet Chain remained flat compared to the prior year, closing at US$5,87 million from US$5,86 million in 2024.
The unit’s sales volumes recorded a 0,6 percent decline, from 474 627 units in the second half of the prior year to 471 791 units in the current period.
“The sales mix between credit and cash sales was largely unchanged at 64 percent credit sales and 36 percent cash sales. We opened Jet Shurugwi during the period,” he said.
Mr Mushosho said revenues for the Express Chain were still relatively immaterial, and the group would continue to utilise the Express Chain as its market expansion vehicle.
