The retailer is set to open its first standalone cellular store called Edgars Connect.
The 50 new stores will be adding to Edgars’ existing footprint of more than 100 stores. Picture: Gallo Images/Lefty Shivambu
Edgars is planning its comeback by opening new stores after surviving years of financial distress. This comes at a time when most South Africans are struggling financially and retail therapy is not on top of their spending list.
Its parent company, Retailability, announced the news on Wednesday morning, citing the three-year turnaround strategy has created a stronger, more agile business positioned to capitalise on emerging opportunities in the local retail market.
Edgars was one of the first businesses to be placed under business rescue due to the Covid-19 pandemic. Retailability acquired the retailer in 2020 and implemented a turnaround strategy that included store resizing and profitability improvements, among other measures.
Is it the right time for Edgars?
Edgars is looking to open 50 new-generation stores over the next two years, starting this July and August, adding to the existing footprint of at least 100 stores nationwide. It seems most of these stores will be opened in parts of Western Cape.
Professor Waldo Krugell, an economist at the Faculty of Economic and Management Sciences at North-West University (NWU) told The Citizen that improved macroeconomic conditions would support Edgars’ expansion.
“It is true that consumers are living on a knife’s edge of volatile fuel prices and the higher repo rate at the moment, but if those improve, the past couple of years of spending would support expansion,” he said.
“They are sending a business confidence signal. To my mind, the question is where does Edgards see itself competing in a relatively crowded market? Which segment are they targeting?”
New era for Edgars
Retailability CEO Norman Drieselmann said the expansion reflects confidence in the turnaround strategy.
“Our recipe for success is straightforward but takes real discipline to execute,” he said. This follows the retailer cutting more than 100 000m² from its national footprint in a bid to restore profitability.
He added that while they deeply respect the brand’s heritage, they are running the business like a start-up “that is completely fixated on its customers”. Edgars was established in 1929
Drieselmann said performance of the right-sized stores has exceeded expectations, delivering stronger productivity and larger basket sizes.
Standalone cellular store
According to Retailability, the retailer is set to launch a standalone cellular store in July called Edgars Connect.
In addition, the retailer is going to open more standalone stores of the Edgars Beauty network in Boland, Paarl and Stellenbosch, Western Cape. The Edgars Beauty network currently has 18 standalone stores.
“We made very deliberate decisions to ensure that every store is the right size for the market it serves,” said Drieselmann.
“We are now able to bring Edgars fashion and beauty back to communities where the brand was previously unable to trade sustainably. What we are doing now is responsible, strategic rollout, where we know exactly where we are going and why.”
More Kelso stores coming
The retailer is also looking at expanding its women’s fashion chain, Kelso. The brand targets the middle market and will open its fourth store at Tygervalley in the Western Cape.
The fourth standalone store builds on the encouraging performance of its pilot phase.
Drieselmann added that Edgars still has a long way to go.
“At 97 years old, this brand still has significant growth ahead of it.”
