South African retail icon opening new stores after escaping business rescue
Edgars is looking to expand its store numbers and product offerings, just six years after the group was placed in business rescue.
Founded in 1929 by brothers Morris and Eli Ross in Johannesburg, Edgars would become a dominant player among South African department stores.
The company was listed on the Johannesburg Stock Exchange (JSE) in 1946 and expanded over the following six decades.
In 2007, the company was then bought by an American private equity firm, Bain Capital, which acquired Edgars’s parent company, Edcon, and delisted it from the JSE.
The company then faced major challenges in the following years, including mounting debt and increased competition.
These issues were exacerbated by the COVID-19 pandemic, which led to Edcon entering business rescue proceedings.
Durban-based Retailability acquired the majority of Edgars’ 194 stores, aiming to reposition the brand as a mass-market fashion and beauty retailer. Retailability is now looking to turn the company’s fortunes.
Although other parts of South Africa’s retail sector are focusing on consolidation and efficiency, Edgars is looking to grow its offerings.
After three years of rightsizing its store network and aligning its physical presence to the economic profile of the customers, the retailer is now delivering results and creating a platform for future growth.
“Our recipe for success is straightforward but takes real discipline to execute,” says Norman
Drieselmann, CEO of Retailability.
“We respect the 97-year heritage of this brand deeply, but we run the business like a start-up that is completely fixated on its customers. That combination is powerful, and it is working.”
Edgars currently operates 100 stores across South Africa and is preparing to roll out an additional 50 new-generation community-based stores over the next two years.
The first locations are scheduled to open in July and August. The group said that the performance of its rightsized stores has already exceeded expectations.
The group has led to stronger productivity and larger basket sizes while creating a more agile platform for growth.
Since the start of its rightsizing programme, Edgars has returned over 100,000 sqm of space to landlords.
This has allowed the group to create a better shopping environment for customers while improving the profitability and long-term sustainability of our stores.
Not just the standard Edgars’ stores
Beyond the main stores, Retailability is also investing in complementary growth opportunities, including the standalone Edgars Beauty network.
Edgars Beauty currently operates 18 stores, with further expansions planned as the brand grows its presence in the Boland, including Paarl and Stellenbosch.
It will also launch Edgars Connect this month, marking the brand’s first dedicated standalone cellular store, extending the retailer’s reach into a high-growth category.
Retailability’s portfolio also includes Kelso, a standalone ladies’ fashion brand targeting the mass middle market. The brand recently opened its fourth store at Tygervalley and is looking to expand further.
Drieselmann stressed Edgars’ expansion is not growth for growth’s sake.
“We made very deliberate decisions to ensure that every store is the right size for the market it serves. The work we have done over the past three years has paid off,” he said.
“While optimisation remains ongoing, we are now equally focused on growth. We are now able to bring Edgars fashion and beauty back to communities where the brand was previously unable to trade sustainably.”
The group said that the fundamentals that are underpinning the brand remain non-negotiable, with a focus on customer value and the agility to respond quickly to market shifts.
“At 97 years old, this brand still has significant growth ahead of it. We see real opportunity, and we are going after it with both the respect this brand deserves,” said Drieselmann.
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