• Expansion Plans: Edgars is set to open seven new Express Stores by the end of 2025 targeting underserved low-income markets
• Strategic Focus: The Express Chain has grown to nine stores and is positioned as the primary vehicle for market expansion
• Operational Efficiency: The group is investing in smart merchandise procurement and solar power to enhance operational efficiency, reduce costs

Harare- Edgars Stores Zimbabwe Limited, a prominent fashion retailer established in 1946 by Sydney Press, has been a cornerstone of Zimbabwe’s retail landscape for over 77 years, catering primarily to middle and upper-class consumers with a diverse range of clothing, footwear, and textiles.

Facing intense competition from the informal sector and intensive taxations and regulations from the government, which has flooded the market with low-quality, inexpensive clothing appealing to Zimbabwe’s large low-income population, Edgars devised its Express Chain to capture this underserved market segment.

The informal sector capitalises on low pricing, offering clothing at significantly reduced costs compared to formal retailers. This is achieved through sourcing cheap, often low-quality garments, many of which are illegal imports that evade taxes and regulatory costs.

These imports, frequently smuggled from neighbouring countries or beyond, allow informal traders to undercut formal retailers’ prices, appealing to price-sensitive low-income consumers who prioritise affordability over quality.

The informal sector’s ability to operate without the overhead costs associated with formal retail such as rent for prime retail spaces, compliance with labour laws, or investment in branding further enables them to maintain low prices. This pricing strategy has posed a significant challenge for Edgars, as it erodes their market share among cost-conscious customers, prompting the retailer to launch its Express Chain to directly compete in this segment with affordable, quality merchandise.

Hence, to counter this, Edgars launched the Express Chain, a cash-only retail model designed to provide affordable, high-quality merchandise to low-income consumers starting from a dollar, thereby competing directly with informal traders while maintaining the brand’s commitment to quality.

Building on a strong performance in the first half of the financial year ending February 6, 2024, Edgars is now set to expand its footprint by opening seven new Express Stores by the end of the 2025 financial year, a strategic move to capitalise on growing demand and broaden its customer base.

The Express Chain has emerged as a key pillar of Edgars Stores’ expansion strategy, specifically targeting low-income consumers in underserved areas with high demand for budget-friendly retail.

As of the first half of 2024, the Express Chain grew to nine stores with the addition of three new locations in Rusape, Tynwald, and Robert Mugabe, following the opening of four stores in November 2024.

Although its revenue contribution remains smaller compared to the Edgars and Jet Chains, the Express Chain’s strategic importance lies in its ability to penetrate new markets and attract a broader customer base.

Edgars is focusing on strategic location selection for these new stores, prioritising areas with high foot traffic and economic activity to maximise market reach and accessibility.

The group’s ambitious plan to open seven additional Express Stores by the end of 2025 is driven by improved aggregate demand observed from Q2 2024, particularly in regions with significant low-income consumer spending potential.

To support its expansion, Edgars Stores is prioritising operational efficiencies and smart procurement strategies to maintain competitive pricing and high-quality offerings, which are critical for retaining the Express Chain’s price-sensitive customer base.

Investments in backup solar power have been implemented to reduce costs, enhance system uptime, and improve the customer experience in both new and existing stores.

Additionally, Edgars is leveraging the increased production capacity of its Carousel Manufacturing division, which saw a 40% rise in output to 185,000 units in the first half of 2024, supported by a USD 345,000 investment in a cutting room solution funded by the Central Bank’s Targeting Finance Facilities.

This boost in production ensures a steady supply of quality products tailored to the Express Chain’s market, helping Edgars maintain a competitive edge against the informal sector’s low-cost offerings.

However, illegal imports continue to pose a challenge, as they flood the market with cheaper alternatives, undermining Edgars’ pricing strategy and forcing the company to focus on quality and brand loyalty to differentiate itself.

Edgars Stores’ broader retail strategy involves a continuous review of its segmented retail propositions to align with evolving customer needs.

For the Express Chain, this means refining merchandise execution to cater specifically to low-income consumers while maintaining operational discipline through the cash-only model.

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