Edgars Delivers Major Profit Gains Through Right Sizing Strategy That Builds Stronger More Efficient Stores

Under the leadership of chief executive officer Norman Drieselmann, the right-sizing initiative is not a downscale, but a deliberate recalibration of space, customer flow and trading efficiency.

“Right-sizing is not about making stores smaller, it’s about making them stronger,” says Drieselmann.

“By rethinking how we use space, we’ve improved the customer experience, increased productivity and build stores that deliver better results for landlords and shareholders.”

Efficiency that delivers

Over the past two years, Edgars has reduced its total retail footprint from approximately 465,000m² to 360,000², creating a network of leaner, better-performing stores.

This change has resulted in an annual rent saving of more than R150m and a payback period of under 18 months on optimisation projects.

This process has been implemented at their four flagship stores, which includes Sandton City, Canal Walk, Gateway and Menlyn, with each delivering stronger trading density and improved turnover per square metre.

At Canal Walk, a 50% reduction in floor space resulted in a 5% drop in sales but produced a R6m profit, an improvement owing to reduced costs, proving that performance improves when retail environments are designed with purpose, creating a sustainable Edgars for customers, landlords, suppliers and staff.

Performance through focus

The right-sizing process has allowed Edgars to focus investment where it matters most, store design, merchandising and the growing beauty and skincare categories that attract new customers and increase dwell time.

The beauty business now contributes close to one-third of total sales, just under 30% market share. By integrating beauty into the fashion floor, Edgars has created a single destination where customers can shop the complete wardrobe in one visit.

Buisling confidence for the long term

The success of right-sizing has reinforced Edgars’ position as a resilient, forward-thinking tenant within South Africa’s retail property sector. Analysts and landlords have noted a clear improvement in profitability and operational efficiency.

“We are aligning our stores with how people live and shop today,” says Drieselmann. “Edgars is building a retail model that is responding to the market today, optimising both online and brick and mortar retail for maximum alignment to consumer trends.”

A strategy that reflects global retail trends

The shift aligns with international best practice. According to the International Council of Shopping Centres, (ICSC) linked research, more than one in four global retailers are reducing their physical footprint to increase efficiency. Edgars’ results demonstrate how this approach translates successfully to the South African market.