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Edcon 3rd quarter sales 2% down on previous year

Published: 20th Feb 2017
Author: Tony Dickson - S&V Editor

Johannesburg (SA) – Edcon’s 3rd quarter sales, including most of December, were down 2% on the previous year, CEO and MD Bernie Brookes told suppliers this week.
        In a letter dated February 21, he wrote:

        “Total revenues decreased by R185 million, or 2.0% from R9,163 million in the third quarter 2016 to R8,978 million in the third quarter 2017, which was due mainly to the weaker retail sales. Retail sales, which decreased primarily as a result of weak credit sales, were 2.8% lower at R8,441 million in the third quarter 2017 from R8,685 million in the third quarter 2016. Credit sales decreased by 8.7% whilst cash sales increased by 0.7% compared to the third quarter 2016. Retail sales in October and November of the current quarter were below expectations, but trading in December 2016 improved and was better than expected, largely as a result of numerous peak trading initiatives that we introduced over the period.”

        At the Edgars division, retail sales decreased by R87 million or, 2.5%, from R3,552 million in the third quarter 2016 at R3,465 million in the third quarter 2017.

        The discount division “continues to be negatively affected by declining credit sales. Credit sales decreased by 9.2% compared to the third quarter 2016, and cash sales decreased by 3.0% due to customers in this division being more susceptible to difficult macroeconomic circumstances. Total retail sales decreased by R151 million, or 4.9%, from R3,101 million in the third quarter 2016, to R2,950 million in the third quarter 2017.”

        At the Specialty division, total retail sales for the third quarter 2017 was R1,838 million, a decrease of R7 million, or 0.4% compared to retail sales of R1,845 million in the third quarter 2016. Credit sales decreased by 4.7% whilst cash sales increased by 1.1%. Ladieswear, menswear, childrenswear, cosmetics and homewear reported positive sales growths compared to the third quarter 2016, while footwear, cellular, reading, stationery and entertainment and digital underperformed.

        Sales from other African countries decreased by 1.4% compared to the third quarter 2016, and contributed 10.6% (8.6% excluding Zimbabwe) of retail sales for the third quarter 2017, slightly up from 10.5% (8.5% excluding Zimbabwe) in the third quarter 2016.

        “Progress has been good,” he wrote in closing. “There is new energy, excitement and urgency among our 48 000 employees, and I am certainly encouraged that a new, strong and robust Edcon is fast becoming a reality, and which is set to re-emerge as the leading clothing retailer in Africa.”

©2017 S&V Publications
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