Edcon's retail sales up between 4.7% and 6.5%

Edgars performance is likely to be stronger in second quarter. Image:Mall Guide

The group said the sales increase was primarily due to a healthy trading performance from the discount division as well as a more positive trading performance in the Edgars division‚ despite the temporary disruptions caused by the refurbishment and other transformation initiatives that were now nearing completion.

On a same-store basis‚ retail sales were expected to be between 1% and 1.5% higher than a year earlier‚ primarily because of the trading performance of the Discount division.

Edgars division retail sales were expected to be be just over R3.0bn for the second quarter‚ compared with R2.97bn for the second quarter last year.

Changes to stores help performance

"The expected increase is primarily due to the continued opening of Edgars Active stores and promotional campaigns. However‚ we expect same-store sales to be lower by between 1.5% and 2.0% as the temporary disruptions from the transformation initiatives continued across Edgars stores.

"The transformation programme comprises three elements; a refurbishment of 72 of the 186 stores along with an optimisation and support programme along with an improved product offering‚ with new brands‚" the company said.

It said the Edgars refurbishment will be completed before the start of the Christmas shopping period‚ with 61 of 72 stores done. "Trading had improved in the first 16 stores to be completed‚" it said.

According to Edcon the discount division retail sales will be worth over R2bn for the second quarter‚ a similar value to the performance last year.

"The small increase is primarily due a strong performance in the ladies and menswear areas. We expect same-store sales to be between 5.0% and 5.5% higher in the second quarter," the company said

CNA retail sales were expected to be worth just over R450m and on a same-store basis, retail sales remained generally stable.