Itai Ndongwe
HARARE – Edgars Stores plans to open 16 new stores this year as it continues implementing its turnaround strategy following years of decline.
On the sidelines of the company’s AGM this morning, CEO Sevious Mushosho told FinX that the group will open 10 new Express stores, four additional Jet stores and two Edgars stores.
Of the Jet Stores, two will be opened this month at Hatcliffe Mall and Makoni.
Mushosho said the group will also re-launch its Express shops, targeting the low-income segment of the economy, where it will sell for cash. The Express chain unit will focus on development locations such as various Rural District Councils and downtown marketplaces in different towns that are “pretty big” in terms of market. Two Express stores will be opened this month.
In terms of the financing needed for this growth drive, the company stated it had set in place a US$1.5 million budget for new stores that will be rolled out this year.
Meanwhile, the company has begun importing cloth from Turkey, and work with Italy is underway. The business will spend approximately US$6 million on fabric importation, compared to us$4 million in 2023.
On exporting to South Africa, the company wants to carry world-class garments following the arrival of new machines that will provide the company with proper stitching, as well as their designer, who works with international rivals.
”We’ve got our own top designers at Carousel who work with our international counterparts. So our trends basically track fashion direction worldwide. We work with international designers. Actually, we’re going to have a designer from Italy based at Carousel when we start producing using Italian fabric,” Mushosho added.
Edgars’ trading report for ended March 31, 2024 shows that the company’s chains increased market share by adding 1,278 new account clients, indicating confidence in the business’s path.
After retooling Carousel with new automated and semi-automated machines, production volumes have increased from 4,000 to 7,000 units per month in 2022 to up to 45,000 units per month. Edgars aims to reach 100,000 units per month with the new machines.
During the review period, Carousel lowered sales costs by producing its own fabric and selling it to chains.
