{"id":27415,"date":"2012-11-28T02:58:46","date_gmt":"2012-11-28T00:58:46","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=27415"},"modified":"2012-11-28T08:51:35","modified_gmt":"2012-11-28T06:51:35","slug":"edcon-hampered-by-it-costs","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/trending\/27415\/edcon-hampered-by-it-costs\/","title":{"rendered":"Edcon hampered by IT costs"},"content":{"rendered":"

Retailer Edcon<\/a>, has bemoaned a 14.7% rise in “other operating costs”, primarily due to IT costs which contributed towards an overall loss of R1.012 billion in results from continuing operations in the 26 weeks ended September 2012.<\/p>\n

Edcon, which houses brands including\u00a0CNA, Edgars, Boardmans and Jet in its portfolio, reported a rise in total revenue during the period to R12.06 billion\u201a from R11.77 billion a year earlier.<\/p>\n

Edcon said that store costs increased by R75 million, or 6.9%, from R1.09 billion in the second quarter 2012, to\u00a0R1.169 billion in the second quarter 2013. The primary drivers of this increase were rentals,\u00a0electricity and water costs, as well as assessment rates.<\/p>\n

For year to date 2013, store costs increased\u00a0by R164 million, or 7.5% – from R2.188 billion in year to date 2012, to R2.35 billion.<\/p>\n

Other operating costs increased by R108 million, or 14.7%, from R734 million in the second quarter 2012 to R842 million in the second quarter 2013.<\/p>\n

“This significant increase is primarily as a result of\u00a0IT costs relating to the modification of the debtors system for the sale of the receivables included in\u00a0transitional costs as well as higher head office costs relating to divisional management,” Edcon said.<\/p>\n

The retailer said it also invested R52 million in information systems infrastructure in the second quarter 2013, compared\u00a0to R62 million in the second quarter 2012.<\/p>\n

Earlier this month (November), Edcon\u00a0concluded the first closing of an agreement with Absa<\/a> for the\u00a0sale of its private label store\u00a0card portfolio, for R8.8 billion.<\/p>\n

Earlier this year, Edcon\u00a0opened its CNA chain to the online community through a revamped website which offers credit account purchases 24\/7.<\/p>\n

Related articles<\/h3>\n

Pick \u2018n Pay\u2019s online recipe<\/strong><\/a><\/p>\n

Woolworths targets online retail growth<\/strong><\/a><\/p>\n

Retailers: We don\u2019t sell your information<\/strong><\/a><\/p>\n

CNA makes e-commerce play<\/strong><\/a><\/p>\n

Absa in e-commerce deal with large retailer<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Edcon, the clothing, footwear and textiles retailing group, has bemoaned a 14.7% rise in “other operating costs” primarily as a result of IT costs.<\/p>\n","protected":false},"author":9,"featured_media":27422,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[1],"tags":[4713,3313,3312,4711,26,4712],"class_list":["post-27415","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trending","tag-boardmans","tag-cna","tag-edcon","tag-edgars","tag-headline","tag-jet"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/27415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=27415"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/27415\/revisions"}],"predecessor-version":[{"id":27438,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/27415\/revisions\/27438"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/27422"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=27415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=27415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=27415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}