Edgars Zimbabwe shifts focus to low-end market

Edgars Stores Limited, one of Zimbabwe's leading clothing retailers, has announced a strategic shift toward the low-end market, revealing that 60% of the country's clothing market now falls within the affordable segment. This move is part of the retailer's broader plan to expand its Express Stores, which are aimed at catering to lower-income consumers in response to the growing dominance of second-hand clothing vendors.

In January, Edgars outlined plans to launch 20 new Express Stores throughout the year with an investment of approximately US$200,000. These new outlets are expected to serve the economically disadvantaged demographic by offering affordable clothing items priced between US$1 and US$10. The Express Stores, which vary in size from 100 to 150 square meters, have already gained traction in Zimbabwe's informal retail sector.

"The Zimbabwe market is primarily in the informal sector. Our internal research indicates that about 60% of the market is in the low-end segment, which has traditionally been serviced by small players such as open space traders (Kotamayi), runners, and boutiques," said Collin Mupatiki, General Manager of Edgars Express Stores. "As a market leader in the clothing industry, it became imperative for Edgars to recalibrate and focus on this space, which holds significant growth potential."

The rise of the second-hand clothing market has had a profound impact on formal retailers like Edgars, as they struggle to compete with the affordability and variety offered by pre-owned garments. Despite this, Edgars' decision to focus on the low-end market comes as part of its strategic response to the growing demand for budget-friendly fashion.

"The rapid success of the Express Stores highlights the potential for revenue growth in this space, especially as there is substantial cash circulation in the informal sector," Mupatiki added. According to the Reserve Bank of Zimbabwe, the informal sector is currently circulating at least US$2.5 billion in cash, offering a significant opportunity for businesses catering to this segment.

In response to this demand, Edgars plans to sustain its growth through targeted marketing strategies aimed at engaging local communities. These include roadshows, flyer distributions, and promotions through local radio stations. The company is also leveraging digital marketing through social media geo-targeting and SMS campaigns to reach Zimbabwe's tech-savvy youth.

Edgars' Express Stores are part of a broader retail portfolio that also includes Edgars Stores, which cater to the high-end market with international fashion trends, and Jet Stores, which target the middle-income market with stylish and trendy clothing for families. Mupatiki emphasized that Express Stores fill the gap by offering affordable clothing for the entire household in the low-end market.

"By the end of fiscal year 2025, we aim to have opened 20 new Express Stores," Mupatiki said. "We also measure our performance based on the number of open stores, sales, and basket size, with a target average spending of US$10 per invoice."

The company's latest addition, the Shurugwi Express Store, marks another step in Edgars' efforts to expand its retail footprint and meet the needs of the low-income demographic across the country.

With the success of its Express Stores and its strategic focus on affordability, Edgars is positioning itself to thrive in the increasingly competitive and price-sensitive Zimbabwean market.