CLOTHING retailer Edgars Stores Limited plans to launch 20 new Express stores this year, shifting its focus to a lower-income demographic currently dominated by second-hand clothing traders.
The group’s expansion strategy aims to significantly increase its retail presence to compete in this space, driven by the rise of second-hand clothing traders.
In the half-year period ended July 7, 2024, the group’s losses widened to US$338 292 from US$174 310 in the prior year, attributed to the impact of second-hand clothing.
Sevious Mushosho, group chief executive officer at Edgars, told businessdigest that the initiative underscored the company’s commitment to enhancing accessibility to its products and services, catering to growing consumer demands in various regions.
“The average capital expenditure for each standalone store is approximately US$10 000, indicating a strategic investment approach that balances financial prudence with the need for expansion,” Mushoso said.
“This investment reflects Edgars’ dedication to creating a robust retail network that meets customer needs while maintaining operational efficiency. By renting Express stores in diverse locations, we create pathways for everyone to access quality goods and services.”
This comes as the volatile exchange rate has significantly shrunk disposable incomes for consumers.
Mushosho said several Express stores were already operational, which included the Simon Mazorodze store in Harare, the Express Mobile Store, Mutare Express, Hogerty Hill, and Marondera.
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He added that these stores would serve as bridges to the lower-income market.
“By promoting inclusivity, we empower this segment to thrive, ensuring that quality is accessible to all,” Mushosho said.
He highlighted that with this aggressive expansion plan, Edgars was not only poised to bolster its market presence but also strengthen its competitive edge in Zimbabwe’s dynamic retail sector.
“By strategically placing Express stores, we can weave a fabric of community that embraces every income level,” Mushosho added.
The government is currently implementing measures to combat the influx of second-hand clothing, which has flourished and impacted the country’s formal clothing sector.
Mushosho supported the ban, saying, “we reclaim our style and our economy, offering new clothes at prices that make everyone smile. Thus, there will be a huge impact, and the country will be happy as they will buy new clothes at very low prices.”
