HARARE – Zimbabwean clothing retailer Edgars Stores Limited delivered a strong first-quarter performance, signalling renewed momentum in its turnaround strategy as rising sales volumes and growing cash purchases helped the group strengthen its position in an increasingly competitive retail market.
The retailer recorded a 43 percent increase in group sales volumes during the quarter ended April 5, with total units sold rising to 543,100 from 379,535 in the corresponding period last year.
The performance comes against a backdrop of subdued consumer spending, persistent competition from the informal sector and ongoing pressure on household incomes, highlighting the resilience of the company’s recovery efforts.
Group Chief Executive Officer Sevious Mushosho said the growth reflected improvements in product offerings and stronger customer engagement initiatives.
“Sales volumes increased by 43 percent, from 379,535 units in the prior year’s first quarter to 543,100 units in the current period. This growth was driven by improved merchandise assortments and customer endorsements of the product range and overall offering,” he said.
The results suggest that management’s focus on merchandise competitiveness and customer experience is beginning to translate into stronger market share gains for the retailer.
Shift Towards Cash Sales
A notable feature of the quarter was the continued migration of customers towards cash purchases, a trend increasingly evident across Zimbabwe’s formal retail sector.
At the flagship Edgars chain, sales volumes climbed 35 percent to 172,320 units compared to 127,230 units during the same period last year.
The sales mix also shifted significantly, with cash transactions accounting for a larger share of total sales.
“The sales mix between credit and cash shifted notably towards cash, with credit sales accounting for 54 percent (2024: 66 percent) and cash sales increasing to 46 percent (2024: 34 percent),” said Mushosho.
The growing preference for cash transactions is widely viewed as a positive development for retailers as it improves liquidity and reduces exposure to credit risk.
Jet Continues to Lead Growth
Budget-focused retailer Jet Stores remained the group’s strongest growth engine during the quarter.
Sales volumes at Jet increased by 37 percent to 302,054 units from 220,204 units recorded during the comparable period last year.
The chain also experienced a gradual shift towards cash purchases.
“Similar to Edgars Chain, the sales mix between credit and cash sales observed a shift towards cash sales closing at 56 percent (2024: 62 percent) and 44 percent cash sales (2024: 38 percent),” he said.
Industry analysts say Jet’s strong performance reflects increasing consumer demand for affordable clothing options as households continue to manage constrained disposable incomes.
Manufacturing and Financial Services Contribute
Edgars’ manufacturing subsidiary, Carousel Manufacturing, recorded modest growth during the quarter, with production increasing by 0.8 percent to 95,184 units from 94,403 units a year earlier.
Management expects a stronger performance from the unit as summer production schedules commence in June.
Meanwhile, the group’s financial services business continued to provide an important earnings contribution.
Revenue from the division rose 11 percent year-on-year to US$1.5 million, supported by growth in the debtors’ book.
“The increase was underpinned by an improved debtors book which grew to US$11.2 million from US$9.8 million in the comparative period, representing 14 percent growth on the back of increased credit sales,” Mushosho said.
Stable Economic Conditions Offer Support
The retailer noted that the operating environment remained relatively stable during the review period, aided by exchange-rate stability under the willing-buyer, willing-seller foreign exchange system and easing inflationary pressures.
While management remains cautiously optimistic about the outlook, it acknowledged ongoing challenges, including utility cost increases, constrained consumer demand and rising input costs.
The company expects improved agricultural output to support broader economic activity and consumer spending during the year.
“Management will continue to focus on working capital discipline, cost containment, merchandise competitiveness, selective store expansion and maintaining prudent credit risk management across the Group’s operations,” Mushosho said.
Recovery Momentum Building
The latest trading update points to a company that is steadily rebuilding momentum after several challenging years for Zimbabwe’s formal retail sector.
With customer traffic improving, cash sales increasing and key business units delivering growth, Edgars appears to be strengthening its competitive position while laying the foundation for sustainable long-term recovery.
For investors and industry observers, the results provide further evidence that established formal retailers can still capture market share despite the rapid growth of informal trading channels and changing consumer spending patterns.
