HARARE - Leading retail chain, Edgars, said it was wary of incessant increases in the price of wool and cotton.
However, the company said it would shield consumers from the subsequent increase in the price of clothing. Edgars is one of companies in the textile industry emerging from decade-long economic problems that afflicted Zimbabwe, with last year no different.
Over the last year, cotton prices increased by 160 per cent and wool prices rose by 44 per cent. The focus going forward will be smart buying to minimize the impact on our customers. Growing market share, while managing costs and working capital, continues to be our key strategic focus, the company said in a statement accompanying its annual report released this week.
Meanwhile, the company released an improved set of results for the year ended January 8, 2010. Edgars said it earned revenue worth more than US$2 million while total comprehensive income was US$1,5 million. Total capital and reserves stood at US$ 4,1 million, it said.
A successful marketing program and enhanced product offering underpinned the consistently positive growth that continued from the first half. Credit retail was highly competitive and various initiatives that included an aggressive account drive and the introduction of high street brands led to a satisfactory performance, read the statement.
During 2010, the Edgars Chain was the growth vehicle with unit sales growing by 213 per cent on the back of strong credit expansion. Margins improved from 48 per cent to 53 per cent. Chain trading profit increased 1740 per cent, while expenses remained tightly controlled.
The quality of the credit book continued to improve. During the year, accounts grew by 186 per cent from 38,773 to 111,199. The active book at year-end was 91 per cent. The collection rate and all other key indicators remain satisfactory.
Post published in: Economy