Edgars a threat to mall landlords.

Edgars a threat to mall landlords.

In a depressed economy such as SA is going through at present, casualties become a reality.  (Stores close for a number of reasons. ) Some examples below….. 1. National retailers close marginal profit stores when lease expires. 2. Independent businesses not financially viable to renew a rental agreement when lease ends. 3. Brand pulls out of country and closes all stores, i.e. Mango/Nine West. 4. Business fails, i.e. Stuttafords. When a small store closes in a regional centre it is usually not difficult to find another tenant to take up…

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The retail credit game!

The retail credit game!

In the days when Edgars Truworths and Foschini were the retail kings in South Africa, most shoppers had a clothing account at one of those stores or more likely they had an account at all three. Having a clothing account was the accepted normal practice, families would buy merchandise and at the end of the month make a payment of one sixth of the account balance. After three correct payments the retailer would increase the customers open to buy or credit limit, and the cycle would continue. Businesses were built…

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Zara…..Is the writing on the wall!

Zara…..Is the writing on the wall!

Just over three years ago Stuttafords closed its doors in Tygervalley shopping mall in Capetown. This retail space then became available for any new tenants looking to represent their brand in this up market shopping venue. Along came Zara and carved out a significant piece of the space and built a stunning store probably close to 2,000 m2 offering ladies, men’s, and a large kids department to the Capetown northern suburbs shopper. When I first visited the store my initial thought was “This store is definately far too big for…

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Has Edgars lost the plot completely

Has Edgars lost the plot completely

Retailers spend large amounts of money on visual material mostly with the objective of creating an exciting environment for thier customers to shop. Large lifestyle visuals, logos and graphics to highlight the latest trends and seasons fashion direction. Often visuals are used to promote certain product sometimes good value items. While browsing in Edgars recently I was amazed at how poorly the store had utilized the price point visual display cards. Not sure what they were trying to say, but certainly left me totally confused. Firstly I came across a…

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Why many are cutting brand logos off their clothes

Why many are cutting brand logos off their clothes

There was a time between the 1990s and mid-2000s when dressing head-to-toe in designer clothing emblazoned with logos was a sign of wealth and success. Now, people are using scalpels to slice logos off. Online, bloggers are posting tutorials on how to remove the thread stitched into shirts and hats without leaving an unsightly outline or picking off the logo on sunglasses without leaving behind a blurry mess. Writing stamped on in vinyl, meanwhile, is wiped away with nail polish remover, according to the Wall Street Journal.  Watch YouTuber Piper2381 customise a hat by…

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Clicks-Explain this one!

Clicks-Explain this one!

Xmas spending is over and now is the time retailers launch into sale to clear end of season merchandise and often old stock. In principle when I buy a sale item I want to see the WAS price and the NOW price to make me feel good about the bargin that is available to me. Not so at Clicks!…… On the 30th December 2016, my wife went to Clicks to buy some sale cosmetics, i.e. nail polish/lipsticks etc. At the Sale display where visuals shout out “SAVE UP TO 50%”…

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Retail success – directly related to Exco management team!

Retail success – directly related to Exco management team!

Retail performance is directly related to the abilities of the executive management team. Successful retail chains have one thing in common, a management team who are in sinc with the needs of the business. When egos and insecurities take second place, those operations will thrive and move ahead. Retailers who have insecure managers only interested in themselves are sure to stumble and fall eventually. Leaders who inspire performance from the team understanding the need to motivate and generate excitement. Unfortunately retail companies who have a senior manager at the helm…

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You choose!

You choose!

The 16th December 2016 being a public holiday and nine days before Xmas, saw many retailers deciding to offer incentives to attract customers. I was in one of our malls and noticed Cotton On had a one day only special. –  40% off all ladies, men’s and homeware merchandise. Now this is a really genuine opportunity for consumers as the 40% discount is on the total range not just the slow sellers that the retailer usually has selected to suit them and not you. The result to me looked like…

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Kelso ! – Really

Kelso ! – Really

Kelso is a clothing label we are all probably familure with, but don’t really consider it to be a brand. It’s more of a label stitched in the inside of the garments where no one can see. We certainly don’t want to wear it as a logo as we would Guess or Nike etc. Kelso belongs to Edgars and has been around for decades, being the merchandise label which is used to identify the house brand. In its day it was the dominate department in the store, generating the best…

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Retail Today- What is really happening!

Retail Today- What is really happening!

It’s not the first time I have written about the changing retail landscape in South Africa and I am sure it will not be the last, as the metamorphosis continues. If we go back +/- five years, the change process had already started. Edgars were involved in a private equity deal which had massive impact on revenue and the business started to drown in debt, loan repayments etc. Senior management made some critical errors with the merchandise direction and started flooding the stores with expensive branded product the South African…

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