LEADING country’s supplier of clothing, footwear, textiles, and accessories, Edgars Stores Limited has experienced a recovery in business performance in the last quarter of the year.
The macroeconomic operating environment improved this quarter as characterised by exchange rate stability and slowing inflation.
The company cautiously extended more credit to customers thereby increasing the number of feet in its stores nationwide.
In a statement, Group’s Chief Executive Officer, Tjeludo Ndlovu said that the year to date turnover for the trading period to 4 October 2020 was down 36% in inflation-adjusted terms and up 445% historically in the Q3.
“Civil servants continued to be a key customer segment constituting 34% of active accounts. Credit reviews done in this quarter drives sales in the last quarter were traditionally the business writes 60% of the year’s credit sales.
“Interest income grew up to 22% year on year in inflation-adjusted terms in line with interest rate adjustments,” she said.
Ndlovu said that active accounts deteriorated progressively from an average of 40.7% of the total number of accounts during the rest quarter to 32.9% as at the close of September trading month.
However, this trend will reverse in Q4 as more account holders utilise their credit for Christmas shopping.
“Debtor’s collections continued the strong run from the momentum gained in Q2. Average collections to debtor’s book were up to 34.7% compared to 28.1% in Q2 and 24.5% last year.
“The quality of the book continued to improve with “Current’’ account balances at 78.2%, up from 63.8% as at the end of June trading period,” she said.
The Group expects the recovery observed in this quarter to continue into Q4 if the macroeconomic stability persists.
“Historically, the last quarter significantly outperforms the rest three, and accordingly we look forward to a strong performance. Key to achieving this will be good diaspora remittances and reduced new Covid-19 cases which will allow free movement of people,” Ndlovu said.
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