Edgars, a longstanding retail institution in Southern Africa, has undergone significant changes in recent years, marking a shift in its focus and ownership. Originally established as a department store, Edgars has faced various challenges, particularly exacerbated by the impact of the COVID-19 pandemic. This article delves into the transformation of Edgars, exploring its history, changes in ownership, and the factors leading to its recent restructuring.
The Evolution of Edgars: From Department Store Legacy to a New Chapter in Southern Africa’s Retail Landscape
Edgars and TFG Group
Edgars, once a subsidiary of Edcon Limited, was a prominent player in the South African retail landscape with 203 branches. However, in 2020, as part of the restructuring of Edcon Limited, the Competition Tribunal approved the sale of the Edgars division to Retailability (pty) Ltd. This strategic move saw the transfer of Edgars to new leadership, marking a significant turning point in the company’s trajectory.
The TFG Group, a major player in the retail sector, also acquired Jet, another division of Edcon Limited. This acquisition further solidified TFG’s presence in the market, expanding its portfolio of retail offerings.
The Impact of COVID-19
The retail industry globally faced unprecedented challenges with the onset of the COVID-19 pandemic, and Edgars was no exception. The lockdown measures imposed in response to the pandemic exacerbated the difficulties faced by Edgars, already grappling with financial strains.
In April 2020, Edgars filed for voluntary liquidation, signaling a critical juncture for the company. Business rescue practitioners highlighted the dire financial situation and emphasized the need for an “accelerated sale” of its divisions to salvage the business.
Edgars’ Shifting Focus
Under the new ownership of Retailability, Edgars has undergone a strategic shift in its focus. While it was originally known for offering a wide range of products, including clothing, shoes, homeware, and beauty items, the recent emphasis has been on mass-market fashion and beauty products.
The move towards mass-market fashion reflects an understanding of evolving consumer preferences and market dynamics. By honing in on specific product categories, Edgars aims to align itself with the changing demands of its customer base.
Edgars’ Presence in Southern Africa
Edgars continues to maintain a significant presence in Southern Africa. The four Edgars-branded stores in Harare, including locations such as ZB Centre, Westgate Shopping Centre, Sam Levy Village in Borrowdale, Robert Mugabe at Angwa, and a store in Masvingo, underscore the brand’s regional footprint.
New Leadership at Retailability
The takeover of Edgars by Retailability brought Norman Drieselmann into the spotlight as the accountant-turned-retailer at the helm of the Durban-based company. With Retailability’s expertise and leadership, Edgars aims to navigate the challenges posed by the retail landscape and emerge as a resilient and competitive player in the market.
Edgars, a venerable name in Southern African retail, has weathered storms and emerged with a renewed focus under the stewardship of Retailability. The changing dynamics of the retail sector, coupled with the challenges posed by the COVID-19 pandemic, prompted a strategic shift in Edgars’ approach. As it adapts to new market realities and consumer preferences, Edgars looks poised to carve out a successful and sustainable future in the ever-evolving world of retail.