Published: 5 hours ago

Clothing retailer Edgars Stores Limited says more of its customers are increasingly requesting longer payment periods of up to nine months to settle their clothing purchases, a clear reflection of the deepening economic struggles facing Zimbabweans as disposable incomes continue to shrink.

The development highlights shifting consumer behaviour as shoppers grapple with stagnant wages and rising living costs, forcing them to seek credit terms with lower monthly instalments. Edgars, one of Zimbabwe's oldest formal clothing retailers, revealed the trend in its trading update for the half-year ended July 6, 2025.

"The business is witnessing more customers opting for longer tenures of nine months to pay, compared to six months, to enjoy lower monthly instalments," said Edgars chief executive officer Sevious Mushosho. "The business is pursuing opportunities to grow its debtors' active account book."

Mushosho said the group's debtors' book closed the period flat at US$10,4 million, the same as last year. Collections, however, outpaced credit sales growth for the first half of the year, with debtors' collections in line with expectations at 26,8%. Notably, the asset quality of the debtors' book showed a marked improvement, with 85,1% of the book in current status compared to 77,9% at the start of the year.

"The asset quality has remained firm," said Mushosho. "Net debtors written off to lagged sales stood at 1,75%, down from 2,5% last year and significantly better than the industry standard of 5%."

Faced with consumers increasingly unable to afford formal wear upfront, retailers like Edgars have turned to flexible credit offerings to drive sales as they battle the rapid growth of the second-hand clothing market, which has become the go-to option for financially constrained Zimbabweans.

Despite the challenging environment, Mushosho said Edgars anticipates growth opportunities driven by rising aggregate demand and the company's continued expansion of its geographic footprint. He revealed that three new Express Stores were opened during the period, with seven more targeted before the end of FY2025.

"Revenues for the Express Chain are still relatively immaterial," he said. "The group will continue to utilise the Express Chain as its market expansion vehicle."

The Express Stores, aimed at serving low-income consumers, sell new clothing items priced between US$1 and US$10, positioning Edgars to compete more directly with the booming second-hand market. In November 2024, Edgars closed the year with six Express outlets, and in the first half of this year, it opened branches in Rusape, Tynwald, and Robert Mugabe, bringing the total to nine stores.

Mushosho said the company will continue to invest in backup solar power solutions to optimise operational costs and improve customer experience across its stores.

"The segmented retail propositions of the group are being continually reviewed to ensure that the respective offerings effectively meet the needs and requirements of our customers," he said, adding that smart procurement and optimal inventory management remain priorities to maintain healthy margins without compromising on quality.

At Carousel Manufacturing, Edgars' production unit, output increased by 40% to 185,000 units during the review period. The group's total sales volume also rose to 877,411 units from 849,725 units in the same period last year. Edgars Stores contributed 2% of this growth, while the Express and Jet chains contributed 1% and 0,28%, respectively.

Revenue for the Edgars Chain increased by 3% to US$7,9 million during the first half of the year, reversing the 6% decline recorded during the same period in 2024.

Mushosho said management would continue to retool the Carousel Manufacturing plant to boost production and improve efficiency to better support the group's retail operations.

As economic hardships persist, Edgars is banking on its flexible credit offerings, low-income Express stores, and improved operational efficiencies to remain competitive and maintain relevance in Zimbabwe's embattled retail sector.
- Newsday

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