Edgars says its plan to manufacture more clothes locally is working
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Edgars says its plan to increase sales of locally made clothes in its stores is working, reporting volume strong quarterly growth from the Carousel manufacturing unit.
The company invested US$1 million into Carousel, hoping to boost the number of locally-made garments in its stores. As a result, the increase “in our locally produced merchandise through our partners and Carousel to 70% compared to 50% in the previous year, helped create more jobs and improved our profitability”, Edgars CEO Sevious Mushoso says in a report for the three months to April.
“Units sold (from Carousel) went up by 204% to 80,244 this year from 26,437 achieved last year. The surge in the units produced and sold through the chains contributed significantly to the decline in group cost of sales of 23% due to the increased production efficiencies,” Mushosho says.
Edgars expects Carousel to increase production volumes from 45,000 per month to 100,000 per month. The division is expected to resume exports into South Africa this year.
The company is battling to win back some market share from informal markets, which now dominate the market. Apart from lower prices, shoppers have turned to small boutiques they see as offering more fashionable choices. Edgars is trying to work on this by hiring local designers, while targeting higher earners by partnering with suppliers in Turkey.
“To differentiate our business from small mall traders and boutiques where imitation products are often sold, the business started production through its partners in Turkey, very high quality and exclusive merchandise to cater for the upper-income segment of the market,” explains Mushosho.
Recently, Edgars announced a plan to reintroduce Express Stores, hoping to counter informal traders by offering low-price fashion to sway shoppers from second-hand clothes.
“Express Stores will however sell new clothes at very low prices ranging from $1-$10, in the process restoring the dignity of our customers in that segment. We expect to roll out 10 new stores during the second half of the year.”