• Edgars Stores Zimbabwe Limited reported a modest sales volume increase to 877,411 units, contributing to improved profit margins
• Profit margins improved by 1.1%, supported by a 50% reduction in markdowns and strategic procurement of high-quality merchandise
• The Group plans to expand its footprint by opening seven additional Express stores and investing in solar power for operational efficiency

Harare- Edgars Stores Zimbabwe Limited has reported a modest increase in sales volumes for the first half ended February 6, 2024, which contributed to improved profit margins.

The Group’s total sales volume grew from 849,725 units in the prior year to 877,411 units, with the Edgars Chain driving a 2% increase, followed by the Express Chain at 1% and the Jet Chain at 0.28%.

As a result, margins improved by 1.1%, supported by a 50% reduction in markdowns and strategic procurement efforts that prioritised high-quality, competitively priced merchandise.

According Group CEO, Savious Mushosho, “Management has continued its efforts towards ensuring that fresher, high-quality, and more competitively priced merchandise is available in-store,” reflecting a commitment to enhancing the customer offering.

The Edgars Chain saw a 3% revenue increase to USD 7.9 million, a notable recovery from a 6% decline in the same period last year, despite a 1% drop in sales volumes from 375,099 units to 371,368 units, with credit sales slightly up at 64% (from 63%) and cash sales at 36% (down from 37%).

Meanwhile, the Jet Chain’s revenues remained nearly flat at USD 5.87 million, a marginal 0.1% increase from USD 5.86 million, despite a 0.6% decline in sales volumes from 474,627 units to 471,791 units, with sales mix mirroring  that of the Edgars Chain with credit sales at 64% and cash sales at 36%.

During the period, the Group expanded its footprint by opening a new Jet store in Shurugwi.

The Express Chain, targeting the low-income market with cash-only sales, remained a key vehicle for market expansion, though its revenues are currently modest. The chain grew from six stores at the end of 2024, after opening four stores in November, to nine stores with the addition of Rusape, Tynwald, and Robert Mugabe locations in the first half of 2024.

At Carousel Manufacturing, production surged by 40%, from 132,000 units to 185,000 units, driven by cost-optimisation and modernised production processes.

A USD 345,000 investment in a cutting room solution, funded by the Central Bank’s Targeting Finance Facilities, is expected to further boost productivity, aligning with the retail chains’ need for quality products at competitive prices.

The debtors’ book remained steady at USD 10.4 million, with collections outpacing credit sales growth and achieving a 26.8% collection rate, in line with expectations.

 Asset quality improved significantly, with 85.1% of the book classified as current, up from 77.9% at the start of the year, and net write-offs dropped to 1.75% of lagged sales, compared to 2.5% last year and an industry benchmark of 5%.

The ClubPlusMicrofinance business refined its focus to low-risk, deduction-at-source loan products, doubling its loan portfolio to USD 1.6 million by Q2 2025 from USD 0.8 million in Q2 2024, driven by demand for school fees and business loans.

Over 80% of the loan book remained current, supported by robust collection measures and efficient online platforms for loan approvals and disbursements.

“The business is well-positioned for further growth, with additional funding expected in the second half of the year,” Mushosho said.

Looking ahead, Edgars Stores is refining its segmented retail strategies to better meet customer needs, with a focus on smarter procurement, optimal inventory planning, and maintaining flexible credit options to drive spending.

Carousel Manufacturing will undergo further retooling to enhance production and operational efficiency, supporting the retail chains.

The Group plans to open seven additional Express stores before the end of FY2025, expanding its geographic presence, while investments in backup solar power are also planned to reduce operational costs, improve system uptime, and enhance the customer experience, positioning the Group for sustained growth.

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