Edgars Suffers Sales Volume Declines Across Units

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By Alois Vinga

LISTED middle to upper income group classical and commercial fashion stores, Edgars suffered major sales volume declines in most of its units attributable to Covid-19 lockdown closures of physical stores.

The group’s chief executive officer, Tjeludo Ndlovu said the measures prompted the stores to close for more than seven weeks of the 13 weeks in the quarter.

“As a result, year to date turnover for the quarter to 11 April 2021 was down 17% in inflation adjusted terms and up 248% in historic terms compared to the previous year’s quarter. Units sold for the year to date declined to 417,639 from 542,082 last year,” said Ndlovu.

Edgars Chain year to date unit sales of 132,120 units were down 36.1% compared to the same period in 2020.

Credit sales also declined from 68 % to 65 % of the total sales during the quarter compared to the previous year.

On the Jet Chain unit sales were down 42 % for the period to date against 2020 while cash and credit sales contribution to total sales was consistent with prior year at 52% and 48% respectively.

Financial Services receivables book declined marginally from $428 million in December to $420 million as at the end of March 2021.

Active accounts as expected declined to 38 % from 41% of the total number of accounts recorded in December amid expectations to improve as stores open for credit.

However, Carousel Manufacturing Unit sales of 42,757 were up 298.6% compared to last year attributed to the fact that the factory remained open over the lockdown as it was classified as an essential service.

The Club Plus microfinance loan book continued to show tremendous growth reaching  56% to $47.2 million from $30.5 million in December 2020.

“We are therefore encouraging staff members to get vaccinated. We are also perfecting our preparedness for future lockdowns.

“We count some positives such as the decline in borrowing costs over the last month and a good agricultural season which we hope will result in positive economic growth,” Ndlovu added.