Edgars Group invests $1m in retooling to revive manufacturing output

Nqobile Bhebhe,Zimpapers Business Hub

Edgars Stores Limited Group remains steadfast in its strategic intent to retool and optimise its Carousel Manufacturing Division as it seeks to bolster production volumes and operational efficiencies to better support its segmented retail chains—Edgars, Jet, and the newly launched Express Stores.

Early this year, the firm indicated that it is aiming to exceed production levels of 100,000 units per month, a milestone last achieved in 1999, as its retooling efforts progress.

At the time, the production output at the Bulawayo factory was 2,500 units, a significant increase from fewer than 200 units a few years ago.

The clothing firm has invested over US$1 million in retooling to enhance capacity, efficiency, and product quality.

“Management will continue to retool Carousel to underpin increased production and improve operational efficiencies to better support the Retail chains. Smart merchandise procurement and optimal inventory planning remain key focus areas to ensure an optimal merchandise cycle that yields targeted margins, without compromising the merchandise quality,” the firm said.

It added, “In keeping with the strategy to increase supply chain control and improve margins, input volumes from the Manufacturing Division attributing to Group sales increased by 58.2 percent, from 194,000 units in the prior year to 305,000 units.”

Production efficiencies have been on an upward trajectory, underpinned by an expanded order book and the onboarding of qualified, experienced machinists.

This has created room for scaled operations, improved delivery timelines, and enhanced quality assurance.

To cement these gains, the Group channelled US$1.0 million in capital expenditure towards maintaining and expanding its production capacity.

“This was mostly towards automatic sewing machines, surface printers, boiler replacement, and embroidery machines,” the Group noted, indicating its ongoing push towards automation and precision.

The manufacturing momentum comes at a critical time when the Group is facing declining sales volumes across its retail segments due to a challenging macroeconomic environment characterised by inflationary pressures, suppressed consumer demand, and currency volatility.

Retail merchandise revenue closed the year at US$30.7 million—a 9.1 percent decline from the previous year.

Within this, the Edgars chain posted turnover of US$17.2 million, reflecting a 5.3 percent drop, while Jet recorded US$13.4 million, down 13.57 percent from the prior year’s US$15.5 million.

Units sold across both chains also dipped—Edgars by 13.8 percent and Jet by 16.9 percent.

ZWG credit sales continued to decline, contributing 11.8 percent to ZWG sales, down from 17.2 percent in 2023, while US dollar credit sales maintained a significant share at 71.9 percent of total US dollar sales.

This trend was mirrored in both Edgars and Jet, reflecting reduced customer appetite for credit amid elevated interest rates and a general tightening of disposable incomes.

 

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