Edgars to open 50 new stores as turnaround strategy gathers pace

Edgars plans to open 50 new stores over the next two years, marking a shift from shrinking its footprint to growing the business after a three-year turnaround programme.

The rollout marks a significant milestone in the retailer’s turnaround strategy, which has focused on resizing stores, improving profitability and aligning its footprint with the economic realities of the communities it serves.

The first of the new-generation stores are scheduled to open in July and August, adding to Edgars’ existing network of more than 100 stores nationwide.

Retailability CEO Norman Drieselmann said the planned rollout reflects confidence in the turnaround strategy implemented over the past three years.

“Our recipe for success is straightforward but takes real discipline to execute,” he said, adding that the business is being run like a start-up “that is completely fixated on its customers.”

Over the past three years, Edgars has reduced its retail space by more than 100,000m² in a bid to improve profitability and make stores more efficient.

According to the retailer, the smaller-format stores have exceeded expectations, generating stronger sales productivity and higher customer basket sizes while creating a more sustainable operating model.

Drieselmann said the turnaround had created a platform for expansion into communities where the retailer had previously struggled to operate profitably.

“We made very deliberate decisions to ensure that every store is the right size for the market it serves,” he said.

“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.”

Alongside its core apparel business, Retailability is also expanding complementary brands within its portfolio.

It is growing its Edgars Beauty chain, launching its first standalone cellular store under the Edgars Connect brand, and assessing further expansion of its women’s fashion chain Kelso.

Edgars Beauty operates 18 stores, with further openings planned in the Boland, including Paarl and Stellenbosch, as it seeks to strengthen its presence in the competitive and growing beauty market.

It will open its first Edgars Connect store in July.

Following a pilot phase for Kelso, the company recently opened the brand’s fourth store at Tygervalley and is assessing further expansion opportunities.

Drieselmann said the retailer’s nearly century-old brand remains a key asset as it enters its next phase of growth.

“At 97 years old, this brand still has significant growth ahead of it,” he said.