Edgars’ sales decline

EDGARS Stores Limited says it continued to experience a decline in products uptake in the half-year period to July owing to subdued consumer spending.

Lately, consumers, have been struggling to keep pace with the wave of frequent price escalations as the majority of formally employed population have not been awarded salary increases commensurate to the obtaining cost of living. Some quarters now even estimate that food basket alone for a six member family now stands at around $4 000 a month leaving little or no funds for extra spending.

Edgars outlined an array of issues that propelled the downtrend in their business in the period under review including the introduction of monocurrency midyear 2019 resulting in a 17 percent decline in performance in the company’s collective units.

In a statement accompanying half year results, Edgars chairman Thembinkosi Sibanda, noted that their business recorded a negative unit growth resultant of restrained consumer spending. Going forward the company signalled a pessimistic stance given the obtaining economic environment.

“Consumer spending was suppressed, and continues to slow down due to depressed salaries purchasing power. Business recorded negative unit growth, with only April and May performing positively in unit terms. In June, positive performance was again negatively affected by the introduction of monocurrency. The prevailing liquidity challenges impact negatively on our stocking and growth initiatives while decimated consumer salaries continue to suppress demand,” Mr Sibanda said.