EDGARS Stores Limited posted a 12% increase in profit for the 52 weeks ended January 4 2014 to $4,2 million attributed to an increase in retail sales despite the ailing economy.
Business Reporter
In the period under review, retail sales increased by 8% to $64,8 million.
In a statement accompanying the group’s results, Edgars Stores chairman Themba Sibanda said during the period under review the shrinking economy affected negatively the performance of December sales which were lower than in 2012.
Sibanda said in the period under review nine stores were opened resulting in 49 stores and the performance of the business is largely dependent upon the level of formal sector employment.
“Through various initiatives that we are currently finalising we will be giving our customers more value and wider choice.Greater leverage is being placed on partners for sourcing merchandise which will lead to greater desirability, more fashion and less price,” Sibanda said.
He said Edgars chain sales grew by 5% to $51,4 million. The group said at year-end the group traded out of 26 outlets and the trading density was $2 459 while chain trading was up 1% from the previous year to 21%.
“The Jet Chain results were below expectations. Sales increased by 17% to $13 million but the chain profit decreased by 40% to $522 527 from $869 224. This decrease in profit is partly attributable to start-up costs associated with the opening of new branches,” Sibanda said.
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Edgars Stores now has 23 Jet Stores countrywide.
Trading density stood at $1 436 from $1 607 in 2012 and the focus going forward for the company is on cost control and product assortment improvement in terms of range and price, Sibanda said.
The firm will upgrade its Information Technology system to integrate the system this year to improve its interaction with customers and other stakeholders.
In 2013 the firm spent $1,8 million on refurbishments. During the full year debtors’ accounts grew by 9% to 197 932.
