Fashion firm Edcon H1 sales jump 28%

25 Nov '05

4 min read

Stock turn for the group rose to 5.9 times from an already high 5.7 times.

Both the Department Store and Discount divisions benefited from efficiencies in supply chain management, disciplined cost controls and staff and space productivity. Performance was directly linked to their focus on 'getting the merchandise right'.

The Department Store division (including Edgars, CNA, Boardmans, Red Square, Prato and Temptations) represents 60 percent of group sales. The division reported a 16 percent increase in sales and a 32 percent rise in trading profits.

Edgars delivered turnover growth of 15 percent with an inflation rate of only 2 percent. Boardmans, which is now fully integrated into Edgars, contributed to the significant growth in sales of the home living merchandise category. Stock turn was a commendable 5.4 times.

CNA increased its sales by 21 percent. The chain delivered in excess of 20 percent growth in turnover from interactive media, cell phones and audio products. A focus on inventory management saw the chain improving its stock turn to 3.5 times from 2.9 times in the prior year.

The Discount division (Jet, Jet Mart, Jet Shoes and Legit), which represents 40 percent of group sales, increased its sales and trading profit by 28 percent and 30 percent respectively for the six month period.

The Jet chain increased sales by 25 percent, notwithstanding the 28 percent reduction in its average selling prices. Thedivision's stock turn rose to an exceptional 8.6 times from 8.1 times.

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