Edgars undertakes major strategy

Edgars Stores Limited is embarking on its most significant strategic shift in decades as it seeks to reclaim market share lost to the growing second-hand clothing market. The company's annual report for the period ending January 5, 2025, reveals that shrinking disposable incomes have driven many Zimbabwean consumers to prioritize essential expenses such as food, leaving less room for spending on clothing and footwear. This shift has resulted in households turning to cheaper second-hand merchandise, putting pressure on formal fashion retailers like Edgars.

In response, the group reported a decline of 15.6 percent in total units sold, dropping to 1.99 million from 2.36 million in the previous period, while revenue fell by 9.1 percent to US$30.7 million from US$33.7 million. To counter this trend, Edgars has introduced a clear market segmentation strategy across its three retail chains. The Edgars chain targets high-fashion, premium-quality, and exclusive products, while Jet focuses on value-for-money family offerings. The newly launched Express chain is designed to compete directly with the second-hand market by providing low-cost, brand-new clothing with basket sizes below US$10.

Chief Executive Sevious Mushosho explained that the group's strategy revolves around product differentiation and pricing. Edgars leverages its in-house factory, Carousel, which employs over 600 people and partners with more than 100 local small and medium-sized enterprises to produce exclusive clothing tailored to local sizing standards. This ensures high-quality, well-fitting garments that differentiate the company from informal-sector offerings. The Express chain, in particular, is central to the company's efforts to compete with second-hand clothing by combining affordability with brand-new quality.

In addition to pricing and product differentiation, Edgars is investing in innovation and supply chain enhancements. The company is establishing design hubs, accelerating speed-to-market initiatives, and collaborating with local suppliers to strengthen its domestic production base. Expansion into online platforms is also planned to improve accessibility for customers. Furthermore, the group is upgrading its Enterprise Resource Planning (ERP) system to integrate finance, supply chain, and human resources processes, enhancing operational efficiency and responsiveness.

Mushosho emphasized that these initiatives aim to provide Zimbabwean consumers with high-quality, well-fitting, and affordable clothing, while also supporting local manufacturers. By combining differentiation, affordability, and innovation, Edgars hopes to reclaim its market share and adapt to the country's changing consumer landscape. The strategic shift marks a decisive response to economic pressures and signals a new era for one of Zimbabwe's most established retail brands.