• As the number of positive Covid-19 cases continues to rise daily, our staff, like everyone else, are not immune to the virus. I assure you that as a business we align to set Ministry of Health guidelines. We continue to follow strict protocols as a business to reduce the escalation of Covid-19 infections through our business network. These include ensuring our people wear fabric masks at all times in stores and on public transport. Customers are also only allowed to enter our stores if they are wearing masks.
• Screening of staff when they arrive for work and during the day to ascertain whether they have any of the observable symptoms associated with Covid-19; namely fever, cough, sore throat, redness of eyes or shortness of breath (difficulty in breathing).
• Screening customers at all store entry points and ensuring hands are sanitised.
• Maintaining social distancing principles at all times. This includes continuous monitoring of how many people are in our stores at any one time and reducing those numbers, whenever necessary, to ensure we are adhering to social distancing protocols. We encourage you to leave your loved ones and children at home, if possible, for their health and safety. Our social distancing markings at our service centres are there to encourage you and our people to maintain the recommended minimum of 1-metre distance from those around you.
• Ensuring that if employees are sick or have symptoms associated with Covid-19, they do not come to work.
• Providing our staff with ongoing training and guidance on personal hygiene and preventative measures in our stores, our stores are thoroughly cleaned daily, and all equipment and work surfaces are disinfected frequently throughout the day with specific focus on high traffic touch points such as door handles, counters, fixture rails and fitting rooms.

These health and safety measures are not only being applied instore, but right across our business from the factory to our distribution centres and administrative offices.

In the event of any of our staff testing positive for the virus, we close the location for deep cleaning and sanitisation which is carried out by a disinfection team. All other staff in that location are also tested for the virus as a precautionary measure. Through this, we hope to curb the continued spread of the virus and guarantee some measure of safety for you, our customer, in our shopping environments.

We have also adopted innovative measures to enhance our service convenience. Over and above encouraging the use of online payment transactions to settle your monthly instalments, we have introduced WhatsApp shopping as an option for you to continue enjoying our services in the comfort of your home. Please visit our social media pages and websites for more information about these options.

I encourage every one of you to continue practising social distancing, wearing masks and hand-washing with soap under running water for at least 20 seconds, as these remain the most important prevention measures for Coronavirus infection whether at work or at home. We all have the responsibility to look after each other and do our part to protect our families and friends.

I would also like to take this opportunity to thank you, our valued customers, for your unwavering support during these trying times. We appreciate you and will honour our promise to continue to serve you.

Together we can fight this!

T. NDLOVU
GROUP CHIEF EXECUTIVE OFFICER

Banket store which sports a fresh look and feel that mirrors, the model Kadoma store dubbed as the "store of the future". To better suit customers and to take the customer`s shopping experience a level up, our store showcases a new layout concept reflecting the brand`s identity. The new store features a minimalist sleek concept making the customer’s shopping experience completely user friendly and unique only to the Jet brand.

Through its intricate design, the store has incorporated unique elements to the visual merchandising and fixturing with the aim of housing more products and making the customer`s shopping experience more experiential. The fixturing allows more product to be stocked on one bay – giving customers instant easy access to product variants and sizes they require.

Growth is engraved in Jet `s DNA and serving the communities is part of the strategy to maintain a presence in new and existing markets. The targeted approach is crucial as the brand continues to maintain a prevalent role in acquiring, retaining and serving customers.

Customers can expect to find a wide range of stylish clothing, accessories, trendy footwear and so much more. The new store houses the trendy in-house brands - Massumi, Network Ladies and Gents, J-Classics, Enzo, NxT Generation, Revolution, Jet Boy and Jet Girl and the ever popular Jet Baby. It also offers allied products including bedding, cosmetics, toiletries, hair and a wide range of accessories.

“Our brand strives to ensure that the customer`s shopping experience is a memorable one, through our custom made Financial Services products that include, Credit Accounts, loans offered by our sister business unit Club Plus. We also offer flexible payment terms that include Laybys, Mobile Money transfers etc”.

Plans are underway to increase the retail chain`s footprint across the country. We are excited about being in Banket with this brand new branch, and look forward to welcoming the residents of Banket to this Jet store.

Jet stores which was rebranded from Express stores in 2013, boasts of 26 branches across the country to date.

With so many people from all walks of life in attendance, the major highlights are also the best fashion trends. Big shout to yours truly, Edgars!! With two words Stylish and Glamourous infused in our DNA we got the opportunity to dress up the thirty –eight (38) Castle Tankard Preliminary Competition winners.

Apart from dressing up the winners, we continued to turn heads in what we will dub “fashion`s biggest day out’. In true Edgars culture we partnered with Laurie MacPherson from Own your Rubbish to make a beautiful fashion statement in upcycled bespoke tuxedo and gown.

In line with the event the amazing pieces were made absolutely from recycled materials (castle lager bottle caps, used cans).The message behind the upcycled bespoke outfits is about finding ways to infuse eco-friendly methods into our daily lifestyle.

These chic and glamourous upcycled fashion designs are here to showcase that recyclable clothing can be just as stylish as any other haute couture label and a great way to help out the planet.

In 2020 make sure you don`t miss out on the ‘who are you wearing’ and your mic drop moment in stunning garments. Here is what went down at the Castle Tankard in pictures.

The new Kadoma branch, sports a fresh look and feel. Our store showcases a new layout concept reflecting the brand`s identity and making the branch the brand`s “store of the future”.

Through its intricate design, the store has incorporated unique elements to the visual merchandising and fixturing with the aim of housing more products and making the customer`s shopping experience more experiential. On average the store services 150-200 customers per day and with the revamp we project an upward trajectory of 200-250 customers per day.

The new look Jet Kadoma branch which spreads across 212m (square metres) of gross retail floor space, has been relocated to a more “prominent location' at Herbert Street Stand number 6, Sam Levy`s Mall. With some key retailers being housed at the mall, the location is strategic as the area has high traffic and this move is set to bring convenience to the customers, increase instore footfall and bolster sales. We are thoroughly excited to welcome our customers to their new store.

The trendy and vibrant brand features it`s renowned clothing lines - Massumi, Network Ladies, J-Classics, Network Men, Enzo, Nxt Generation and Revolution. It also offers allied products including bedding, cosmetics, toiletries, and wide range of accessories.

Our brand strives to ensure that the customer`s shopping experience is a memorable one, through our custom made Financial Services products that include Laybys, Loans and Credit Accounts.

In the seven years that Jet has been in Zimbabwe, the brand has managed to extend its footprint to almost every town in Zimbabwe. Jet Stores has 25 stores across Zimbabwe and has plans to expand the branch network to the other towns as it seeks to bring convenience to shoppers. END

"We are proud that we have reopened our foot print store popularly known to the public as "Sales House", the reopening comes as a Christmas gift to the Bulawayo public who have shown undivided support over the years," said the statement .

The group operations director, Mr Vusa Mpofu, said the stores would strive to provide customers with the latest trends in fashion at competitively low prices.

"We continue to improve on being locally relevant by not only upgrading each and every business unit to world class standards, but supporting our communities and local manufacturing industry as well.

"Our new store is in a class of its own and we are confident that our customers will appreciate it and our staff is ready to serve and roll out the red carpet service," said Mr Mpofu.

He said the group went out of its way to stock the latest and fantastic range of fashionable, well styled clothing, an exciting range of footwear, body care, cosmetics and mobile phone handsets all available on credit.

"The Edgars family has invested a lot in reopening the store through the hard work from its untiring and dedicated staff. We thank all our stakeholders and customers who have supported the store in the past and we are inviting prospective new customers to bring their family and friends to experience a memorable shopping experience this Christmas and beyond," he said.

The group runs 24 outlets under the Edgars brand, 16 Jet stores and manufacturing unit Carousel.

Source: Bulawayo 24

The Zimbabwe Stock Exchange-listed clothing giant is running a Shop and Win promotion which started on September 17 and ends on October 27.The final draw is scheduled for November 3 with shoppers standing a chance to win a trip to Dubai, among other prizes.

Mushandu and other models entertained customers and the public with choreographed dances which illuminated First Street Mall in the capital.

Last month, a similar event was held in Bulawayo where models also graced the occasion.

Source: NewsDay

She, however, declined to give figures, saying the company was currently in a closed period.

"During the first four month of the year, we achieved a turnover of 30 percent compared to the same period last year. Gross margins have remained steady," she said.

"Our bottom line is well above last year. The number of accounts grew by five percent, while borrowing was down seven percent. Financing cost declined to 14 percent," Masterson said.

In their annual report for 2011, Masterson said Edgars' outlook would be constrained due to an absence of a lasting solution to the liquidity crisis in the country.

"Wage demands and lack of disposable incomes are increasingly being exacerbated by the micro-financing of customers," said Masteron in the annual report.

"Mindful of this, the group will continue with lowcost store improvements and opening of new sites as resources permit. Our focus wiII be on steady growth, refined merchandise assortment and improving the customer shopping experience," she said.

At the AGM, the company dropped a resolution to buy back its own share due to the liquidity challenges prevailing on the market.

Chairperson, Themba Sibanda, said the board had decided to drop the resolution as it did not see it fit to go ahead with the resolution as its present cash situation did not allow for such an operation.

"The board decided to drop the resolution to buy back its share because we do not have money at present. If we see it fit to do so we will calI for an EGM," he said.

Source: Financial Gazette

Edgars Stores Limited group managing director Linda Masterson said the rebranding of Express and Express Mart was a Zimbabwe franchise initiative aimed at giving consumers value for money and attracting additional customers.

"Lots of Zimbabweans have been travelling to South Africa and other surrounding countries to purchase Jet products. What we have done was basically bringing the Jet brand to Zimbabwe," said Masterson.

"Simply we are rebranding Express and Express Mart to Jet Stores and this will allow us to provide service for our customers' changing needs."

Jet is one of the largest clothing retailer in Southern Africa, with more than 321 outlets across South Africa, Botswana, Lesotho, Namibia and Swaziland. It has been voted South Africa's favourite retail brand.

In a statement yesterday, Edgars said the new Jet brands and concept will be rolled out to customers nationwide in the coming months.

"We will introduce focused merchandise assortments that cater for our customers' different lifestyles, offering a wide variety of products at even better prices, providing more styles for lesser prices," said Edgars Stores Limited.

Edgars said the response to new brands that have been tested in all Express and Express Mart stores have so far been excellent.

"We will to continue phasing out our old brands and labels to make way for the new, providing our valued customers with continuity on wanted products lines whilst improving the assortments our customers are voting for."

She said the new brands, sourced locally, will give our customers the fashion, style and price that they are looking for.

The group intends to widen the Massumi and Enzo lines while introducing new brands like Legit, Network, Niara, Revolution, Nxt Generation, Jet Essentials, Jet Girl and Jet Baby.

It also intends to retain ladies separates and suits under the new name JClassics and Mum2be.

As part of the changeover progress, Edgars will phase out the Express Mart cash card by year-end.

Source: NewsDay

We will be phasing out the now expired Express Mart Cash Card, but will soon launch an exciting new Jet Card. You, along with all Express Mart Cash Card holders, will be the first to be offered the new Jet card when it is introduced next year.

Please bring your expired Express Mart Cash Card to your nearest Jet, Express or Express Mart store before the end of December 2011, and you will qualify for a 10% discount on our new ranges of exciting merchandise which offer you, our valued customer, More Style with Less Price.

We at Jet are looking forward to your visit!

We will Introduce focused merchandise assortments that cater for our customers' different lifestyles, offering a wider variety of product at even better prices, providing more style for less price!

Already the response to the new brands that we have been testing in all Express and Express Mart stores has been excellent. We will continue phasing out our old brands and labels to make way for the new, providing our valued customers with continuity on wanted product lines whilst improving the assortments our customers are voting for.

The new brands, sourced locally and abroad will give our customers the fashion, style and price that they are looking for. We will be widening our successful Massumi and Enzo lines whilst introducing wanted, exclusive brands like Legit, Network, Niara, Revolution, Nxt Generation, Jet essentials, Jet boy, Jet girl and Jet baby. We Will be retaining our highly successful ladies' separates and suits under the new name JClassics and Mum2be will provide maternity wear for our mums to be!

Customers can look forward to wonderful savings, exciting promotions, and fun shopping environments. Improved store layouts and merchandising will make shopping easier and more customer-friendly. Our ranges will provide excellent value for money with well-priced, quality assortments and all the basics in all departments.

We look forward to meeting our valued customers in our new improved shopping environments, so to all customers old and new ... you are welcome!

Group managing director Mrs Linda Masterson said the company would open another branch next month in Marondera.

"So far two Edgars Stores, one in Borrowdale and another at Joina City have been opened " she said.

"Next month we will open another branch in Marondera and we are also doing feasibility studies at other sites."

Mrs Masterson said the group was also refurbishing its braches. Edgars Zimbabwe runs a total of 35 branches, 23 under the Edgars brand and an additional 12 under the Express Mart brand.

Meanwhile, Mrs Masterson said Edgars remained confident of meeting its US$50 million revenue target for year ending January 2012. She said the company had already accrued revenue of US$20 million in the first 6 months.

"We will meet the target; we expect Christmas trading to be in line with forecasts" she said.

Source: The Herald Zimbabwe

The group said a wider merchandise assortment had resulted in increased profitability.

Revenue rose to $20,548 million in the six months to July from $10, 255 million in the same period last year.

In a statement accompanying the group’s financial results, Edgars chairperson Thembinkosi Sibanda said despite the Express chain having faced stiff competition from both formal and informal traders, it achieved growth of 26,2%.

“While this growth is modest against the results in the credit chain, it was well above inflation and GDP (gross domestic product) growth, indicating a slight improvement in market share,” he said.

Sibanda said improvement in productivity in the manufacturing unit had been slow, but steady with a 33, 5% improvement from prior year.

“Measures taken are now starting to take effect and the second-half (and beyond) should produce a profit though it will not erase the first-half losses,” he said.

Edgars recorded a 94% increase in retail sales for the year ended July 2011 to $19,6 million from $10,1 million last year same period. The firm’s trading profit grew 1 028% to $2,3 million in the first six months of the year.

Basic earnings per share went up 20 cents from a loss of 25 cents per share in the comparative period of 2010.

Sibanda said financing costs had a large impact on earnings that grew by 180%. Average cost of borrowings improved to 14,6% in June from 18,2% at year end.

“In August we opened a state-of-the- art Edgars store at Joina City, Harare, and plans are in place to open more stores this year,” said Sibanda

The number of debtors’ accounts grew to 133 598 from 111 199 at the year end. Debt collection rate averaged 25% for the period peaking to 29% in June.

“We will continue to monitor and evaluate credit-worthiness in the face of increased competition from financial institutions,” added Sibanda.

Source: NewsDay (08-Sep-11)

Group finance director Mr Vusa Mpofu confirmed last week the funds were drawn down at the end of last month.

"The funding obtained was mainly used to retire more expensive debt," said Mr Mpofu. "The funding was obtained from a local bank."

The Zimbabwe Stock Exchange-listed clothing retail giant has received support from its shareholders Edcon of South Africa.

Edcon controls 40 percent of Edgars.

In its trade update for the five months to May, Edgars said borrowings for the group stood at US$16,7million at a cost of 16,49 percent a year.

To this period, financing tenor and rates had improved with the US$5 million deal being clinched for a two-year period.

The weighted average rate of interest is projected to decrease to 16 percent from the 18,2 percent in December 2010.

A modest rise in disposable incomes last year led to Edgars' strong monthly growth.

"Since January we have detected stagnation in disposable incomes," said Edgars in its update.

"However, because we are coming off a low base, group turnover for the five months grew 85 percent to US$15,2 million,"

During the same period, retail unit sales grew 47,1 percent and a gross margin of 51,5 percent was achieved, compared with 49 percent last year.

Dollar figures grew faster than units partly due to price increases filtering through after the cotton and wool price increases last year.

"The bulk, however, was a result of the launch of upmarket brands in October, as well as better stocking in areas that can carry better margins," added Edgars.

The number of debtors' accounts grew to 127 910 from 111 199 reported at year end and the debtors' book currently stands at US$12,2 million.

Monthly collections were an average of 24 percent of opening debtors. "Bad debt" handovers, as a percentage of lagged debtors, stood at 0,49 percent.

Edgars said merchandise assortments in ladies' wear improved significantly with notable quality improvements being made by local suppliers.

Imports and internationally recognised brands were also introduced in the stores.

"We expect the half-year topline results to be around 90 percent up on last year while, at profit after tax, we should produce a modest profit against the US$1,7 million loss last year," said the update report.

Source: The Herald Zimbabwe

Edgars CEO Linda Masterson says her catchphrase is "quality, standard, credit"

EDGARS Group CEO Linda Masterson (LM) expects the Edgars Group to roll out more shops in and out of Harare before year end. This week Masterson spoke with Business Digest reporter Tendai Zhanje (TZ) about the company's trading and expansion exercise. Below are the excerpts:

TZ: You have been the Group CEO since 2010, where were you before and what did you bring to Edgars?

LM: I followed a financial career in manufacturing before joining Edgars as Group Financial Director in 1988. After joining the company, I spent the next 20 years alternating between various Edgars directorships, including as Group Manufacturing Director and Group Corporate Services Director before being appointed to the Group CEO position in April 2010.

TZ: Why do you think Zimbabwe has very, few women CEOs?

LM: I think things are slowly changing and that, through role models, people are beginning to see that women can do well in leadership positions. We have to be honest though, the role that the vast majority of women play in the home will inevitably mean that we are in the minority when it comes to the boardroom.

TZ: Edgars has been one of Zimbabwe's main clothing retailers, offering quality clothes, what three words best describe your secret to success?

LM: Quality, standards and credit.

TZ: How have you managed to make a profit despite the low disposable income on the market?

LM: Credit has ensured that we grow the business despite low disposable incomes. The number of accounts grew from just 38 773 in December 2009 to 111 199 in December 2010. We've also had to control our costs tightly.

TZ: What is the direct impact of the increase in cotton and wool prices on Edgars?

LM: So far we have managed to dodge the impact of rising cotton prices but it will inevitably cause a significant rise in the average unit price. With low disposable incomes that will mean a slower growth in unit sales than would otherwise have been the case. Fortunately our factory, which supplies a small but significant part of our product, has a good supply of fabric "old prices".

TZ: How has your credit "vehicle" helped in pushing volumes?

LM: Credit has always been the driving force of our business. With low disposable incomes, credit helps our customers to be able to afford clothing. Imagine trying to buy clothes for the whole family at Christmas without it?

TZ: Woolworths is refurbishing one of its branches adjacent to the Edgars main branch in Harare's First Street. What measures have you put in place to ensure that you do not miss your profit margins and you retain your customers once they start operating?

LM: We expect that new competition will make everyone's share of a very small cake even smaller. But we are gearing up to make ourselves comparable and relevant through revamped stores, with well-trained staff offering quality and fashion, at competitive prices, on credit.

TZ: Rural residents are probably not as liquid as urbanites, are you going to offer them the same services as those in major cities?

LM: You would be surprised! Masvingo, for example, has a very rural clientele and is one of our best-performing Edgars stores. Having said that, we also have the ExpressMart chain which offers quality and value at keen cash prices. We believe the products put together in this chain are an attractive offering.

TZ: How are you planning on increasing your working capital?

LM: Our working capital will keep increasing in line with our growth. The financing of that increased level of working capital is the harder question. So far we have excellent support from some financial institutions and we believe this will continue.

TZ: What contributed to the loss incurred by your manufacturing unit?

LM: Manufacturing in Zimbabwe has been dogged by high utility and wage bills coupled with low productivity. As a result Zimbabwean manufacturing has been unable to compete with imports. We have put in place measures to improve productivity, though not sufficient on their own, these will give us a better basis to work from in 2011.

TZ: What is the VIP card, and how will it increase market share?

LM: The VIP card is an account targeted at high net worth individuals. A customer is invited to join the VIP which gives them instant credit as well as other benefits. The VIP customer is keen on the international brands we are bringing in-store.

TZ: To what do you attribute the achievement of the US$1,5 million profit after tax?

LM: The great work by Team Edgars and the wonderful support from our customers. Staff worked tirelessly to reverse the losses of the first four months and customers showed their approval by shopping with us.

TZ: Down town Harare is flooded with cheap Chinese shops. How is this affecting your market share?

LM: Cheap is not quality and customers will eventually want to return to quality and value for money.

TZ: How do you plan to overtake the Chinese?

LM: I think it is a question of market segmentation and competing rather than "overtaking". Our competitive edge comes from customer service, quality and value.

TZ: What impact will the coming in of Walmart South Africa have on Edgars Zimbabwe?

LM: Well, it looks like the deal may be derailed by the trade unions, which would be sad for the SA customer. As far as how it would affect Edgars Zimbabwe (if it did happen), it is hard to assess, but we do know that shopping trips to SA are becoming less common and so would expect the impact to be muted.

Source: The Zimbabwe Independent 08-April-2011

According to its financial performances for the year ending January 2011, the group posted US$1,5 million in profits attributed to an increase in sales during the festive season. Mrs Masterson said occupancy costs were 7,5 percent of turnover and an improvement would result in the group opening new stores in Marondera, Bindura, Chinhoyi and Beitbridge.

"Yes, we are looking at opening new stores in downtown Harare and rural areas through Express Mart," she said.

Edgars Zimbabwe runs a total of 33 stores, 21 under the Edgars brand and an additional 12 under its Express Mart brand.

During the period under review, Edgars achieved US$36 million in revenue compared to US$11,1 million recorded during the same period last year. The group is excited about the future targeting US$50 million revenue for 2011 and profit before interest and tax of about 15 percent.

Mrs Masterson said during the current financial period the group is targeting finance costs of 4,5 percent of turnover and that borrowings twice covered by debtors.

During the period under review working capital was at US$14 million under high costs of borrowing. The group has however reduced the cost of borrowing from 38 percent in 2009 to about 18,2 percent in December last year before further reducing to 17 percent in February this year. Liabilities for the retail firm closed the year at US$26 million.

Analysts said Edgars results were above expectations against the background that the manufacturing sector is operating below capacity due to lack of funding.

"They have managed to make a profit despite low disposable incomes on the market, money is also expensive and they shrugged off this challenge - it was a surprise for us," said one analyst with a local stock broking firm.

Edgars has continued to get support from its shareholders, Edcon of South Africa including a US$3 million guarantee loan. Edcon controls 40 percent of Edgars Zimbabwe. During the period under review, Edgars reduced its head count by 229 percent, paying US$500 000 in retrenchment costs. Since retrenchment is a once-off cost, meaning the company is in a better financial position. The group has also managed a 186 percent growth in accounts from 38 773 recorded in 2009 to 111 199 in January 2011.

Edgars experienced the increase in accounts following the introduction of the six months credit facility. At its peak in the 1990s, Edgars had about 270 000 accounts.

The group, which competes with Truworths, is targeting to increase its market share and productivity managing costs and working capital remains the key strategic focus.

Source: The Herald Zimbabwe (28 March, 2011)

Disclaimer: Please note that the article above has been reproduced as is from the source stated above. Edgars Stores Limited wishes to add that whilst Edcon SA is the major shareholder with 40%, the remainder of the company is owned by indigenous Zimbabweans.

Are you are an investor, or potential investor, in Edgars? If yes you will appreciate our comprehensive investor relations section. Online share quote and chart, summary financial information and alerts are all designed to ensure you are able to make informed decisions.

If you are new to us our annual report is a good starting point to get to know us better.

We look forward to hearing from you.

Welcome!

Linda Masterson
Managing Director
Edgars Stores Limited

According to the group's financial statement, during the interim period ending June 30, a US$10,26 million turnover was recorded from US$1 475 million achieved during the same period last year.

A bottomline loss of US$617 722 from US$1,5 million as a result of a hefty interest bill of US$900 635 was achieved.

The group said bottomline loss was reduced to US$617 722 (loss per share of 0,25c) as a result of the deferred tax asset from last year's losses.

Masterson said the cumulative loss of pre-tax loss of US$1 146 million at the end of June had been reduced to US$600 000 and the expectation was that it would be "gone in September or October".

The company forecast, borrowings would peak this year to US$14 million, and was also forecasting closing debtors of US$15,9 million and stock of US$4,8 million.

"Borrowings are expected to be at US$12 million by year end when closing debtors should stand at US$21 million and stock at US$7 million," the company said.

"Account holders should rise to over 110 000 by the end of this year compared to 38 000 in December last year, having grown strongly in recent months with 12 567 having been added in August alone and the figure was expected to stand at 78 000 by the end of September," the company said.

Masterson forecast a rise of account holders to 140 000 by the end of 2011, compared with 200 000 in 2003, the last measurable year of normal performance when the group had 46 stores operating compared with 33 now. Accounts peaked at 244 000 in 2006. The company said there had been a 609% increase in volumes in the period, but the acceleration only happened in May when the retailer took the decision to mandatory deposits.

Turnover had amounted to US$3,9 million during the first quarter and US$6,3 million in the second quarter.

The cumulative loss of US$249 000 ballooned to over US$1,1 million after interest (at between 14%-36%) had been added in.

Borrowings had risen to US$8,409 million from US$1,2 million and were on tenures of 30 days to a year. However, following the granting of a US$3 million at 9% from Edcon, the group said it would retire all its expensive debt and look to have paper with a tenure not less than 6 months.

"On a month by month basis, sales rose 136%, and while June had been disappointing, sales were up 14% in July and over 100% in August in a 4-week month. As of Tuesday (Sept 14), sales were up 86% in September," the group said.

Source: Zimbabwe Independent

Restoring the brands standing
Chairman Themba Sibanda said the group had "worked relentlessly" to restore the Edgars brand's standing on the market, with a turnaround having been achieved in May after "various initiatives that were put in place to grow market share".

"The Edgars brand is a household name and, over the years, our customers have associated us with wide CFTA clothing, footwear, textile and accessory) assortments, caring customer service and superior shopping destinations. These attributes, as with all retailers, have deteriorated somewhat over recent years but [the] company has worked relentlessly to bring this much coveted standing back with our Zimbabwean customers," said Sibanda.

Credit accounts grow
Sales for the Edgars chain during the interim period to 3 July 2010 grew by 607% over the same period last year, pushed largely by credit accounts which grew from 38,000 in December 2009 to 62,000 during the reporting period. An additional 12,000 new accounts had been opened in July and August, putting the number of credit accounts at 74,000.

The Express Mart chain, which operates in the more competitive cash market, grew 372% during the period. Sibanda said the remainder of the year will see improvement in the shopping environment and "wider merchandise assortments" to encourage more CFTA spending.

"Overall, we aim to provide our customers with a more pleasurable shopping experience as we consolidate our position as the market leader in the CFTA credit retailing business," said Sibanda.

Source: BIZCOMMUNITY.com

The company, which manufactures, distributes and sells clothing, footwear, textiles and accessories through a network of stores, saw a turnaround in May and expects to report a profit this year.

Together with other label-based clothing chain stores, Edgars faces a severe undercutting from a rapidly growing boutique-based second-hand apparel market, which emerged in the last five years.

In its abridged financial report for the 25 weeks ended July 3, Edgars said it secured low-cost line of credits with tenure long enough to sustain operations, but admitted its capital gearing was still too high.

"While the company has managed to source adequate lines of credit to fund its operations, financing of working capital remains difficult but we did bring down our average cost of borrowing from 38% at year end to 18% currently, with slight longer terms being secured. While gearing levels remain high, this ratio will progressively improve over the one year ahead."

In the first half of the year, unit sales also surged 607%, buoyed by a systematic growth in the credit book.

New accounts nearly doubled, surging to 62 000 from 38 000 in December last year.

In a trading update, the clothing chain store said it added a further 12 000 accounts in July and August.

The rate of account settlement averaged 37,4% per month, peaking at about 50% in May.

Source: NewsDay Zimbabwe