Edgars Stores Limited is doubling down on local production and market resilience as the country’s economy grapples with its toughest challenges in decades, including the worst drought in 42 years, supply chain disruptions and a deeply dollarised economy.
Speaking at the company’s Analysts’ Briefing in Harare on Wednesday, Chief Executive Officer Sevious Mushosho delivered a determined assessment of the retail giant’s performance and outlook highlighting Edgars’ commitment to local partnerships and innovation.
“Our theme for this presentation is empowering local economies and our commitment to buying local. We believe as Edgars Stores Limited that our partnerships with different players in the industry and our focus in local production, producing high-quality products is very important in creating employment and also growing GDPs in different communities we operate in. So that’s very exciting,” Mushosho said.
He painted a picture of a tumultuous year, describing it as a “very strenuous year,” plagued by a historic drought, sharp currency depreciation, and severe demand-side constraints.
“If somebody else is holding a hundred-dollar bill, the best thing about feeding their families is what they think about—not buying clothes for their kids. But we are happy that we fought against that and remained standing and that was quite a solid resilience,” he said.
The country’s broader retail sector faced unprecedented disruptions, Mushosho said pointing to mounting bank interest rates, currency instability and a crippled supply chain.
“The banks were under pressure during the period because of the feed. So, the interest started going up. But the biggest issue was around supply chain disruptions. The supply chain disruptions were very crazy around costs for pricing distortions and around actual liquidity to pay the suppliers,” he said
In response, Edgars leaned heavily on its internal manufacturing capacities to mitigate external shocks particularly after the collapse of a stabilising bank in September that further strained market operations.
Mushosho also highlighted the cost pressures linked to the increased dollarisation of the economy following the introduction of Zimbabwe’s new currency, the Zimbabwe Gold (ZIG).
“These people observed just after the ZIG was introduced, they started pegging their rates and the bills in US dollars exceeding exchange rates. That dollarised that cost. So, your energy costs and local authority costs went up 60%,” he explained.
Acknowledging the competitive threat posed by the dominant informal sector, Mushosho highlighted Edgars’ need to adapt.
“The issue of informal sector is a very topical issue in many aspects. I wouldn’t want to dwell much on it. It was competition but we responded accordingly,” he said.
Part of that response included navigating escalating occupancy costs—particularly after the ZIG rollout—when landlords began demanding rent in U.S. dollars, causing a 35% spike.
“We had to respond to that and operating in Zimbabwe has always been like this since 2000. We had to be more agile and innovative,” Mushosho added.
Despite economic headwinds, Edgars focused on market expansion and streamlining operations.
“What were the strategy initiatives in 2024? We focused mainly on expansion of the market. The whole idea was we did research in terms of the market. We realised that the formal market was about 40%. It was being controlled by informal. For us to have a part in the entire market was a good strategy to run with,” said Mushosho.
In 2023, Edgars opened six new stores operating on a cash-only basis with highly affordable pricing structures.
“The prices range from $1 to $10 a month. The market received us very well,” he said.
Efficiency was a key theme for the year. Edgars optimized its supply chain by introducing “pre-distribution” agreements with suppliers—sorting products before delivery to cut sorting time and reduce distribution costs.
“We differentiated our product offers from the market through improved quality and exclusivity. For us, we are known for exclusive quality and selling original products. That has been our advantage,” he said. “We cannot sell the same product because they are smuggling. They don’t pay duty; we have to differentiate ourselves.”
With an increased focus on partnerships with local suppliers and higher production output at its Carousel manufacturing unit, Edgars is betting on the country’s local economy to deliver long-term resilience.
“We are happy that the market noticed that our product is exceptional and exclusive. If they want our product, there is no one else they can call. That was very important for us,” Mushosho said
