Edgars Sets Aside US$1.3 Million For Expansion, To Open 20 Budget Stores

Edgars Stores Limited has set aside US$1.3 million in capital expenditure for its current fiscal year ending January 4, 2026.

The funds will be used to expand its retail footprint, improve manufacturing, and streamline operations.

This is a reduction from the US$1.9 million spent in the previous year.

A major part of the plan includes launching 20 new Express Stores, supported by a US$200,000 investment.

These stores will target low-income customers by offering new clothing items priced between US$1 and US$10.

This will enable Edgars to compete with second-hand clothing sellers in Zimbabwe’s informal market.

In the company’s 2024 annual report, Edgars chairman Themba Sibanda said:

Opportunities have been identified where merchandise execution can be improved or new emerging ones (can) be pursued.

In addition, management will continue down the path to right-align business overheads to attain volumes in the context of depressed demand.

Flexible credit offerings will be maintained to stimulate increased spend. Management will continue to retool Carousel to underpin increased production and improve operational efficiencies to better support the retail chains.

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.

Sibanda said the company had access to US$12.94 million in total banking and loan facilities as of the year ended January 5, 2025, with about US$2 million still unused.

He said the group plans to continue expanding its retail presence by opening new stores in strategic locations.

To improve in-store customer experience and reduce reliance on expensive power sources, Edgars will invest further in backup solar systems amid expectations of reduced electricity supply.

Sibanda added that, in response to inflation, rising utility costs, power shortages, and exchange rate volatility, the group has introduced strict cost-cutting measures.

These include reducing staff numbers, controlling electricity usage, minimising waste, and improving supply chain efficiency.

More: The Independent

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