Edgars’ Performance Affected by Depressed Consumer Demand
HARARE – Zimbabwe high street clothing chain Edgars Stores, has warned its shareholders that it is likely to make a loss for the six months ending April this year.
This has largely been a result of the depressed demand for the company’s products in the first three months of their trading period.
“The board of directors of the company wishes to inform shareholders of the company and potential investors that it expects a group loss for the six months ended 4 April 2009. Such a loss is mainly attributable to deteriorated trading conditions in the first quarter, depressed consumer demand and liquidity problems associated with dollarisation of the economy in the second quarter,” said the Edgars group secretary Mr Masterson.
Edgars has since April reintroduced very generous credit facilities where customers make an initial deposit and pay the remainder over three months. There is no interest that is charged on the credit. This is one of the ways that the company is looking at making sure that it rebounds from the loss making position.
Apart from the problems which came as a result of the liberalization of the economy, Edgars is also facing competition from smaller players who have opened various shops within the urban areas especially Harare and Bulawayo.
Another factor has been the relatively low income earned by most workers especially civil servants who usually make the bulk of the Edgars customers.
It is however, expected that the strategies being initiated by the company would go a long way in alleviating the challenges it faced in the first half of their year