According to a recent article by Business Day, Edcon is considering closing its flagship Edgars store in the Johannesburg CBD.
This will form part of the ailing retailer’s turnaround strategy, as the company determines whether the Edgars brand is still a viable one to CBD commuters.
Edcon CEO Grant Pattison told Business Day that part of the idea was to have Edgars located in regional malls where it could take advantage of the traffic density.
“We are probably going to end up with one store in the CBD and it’s likely to be Jet.”
The Johannesburg CBD is home to three Edcon stores: an Edgars department store, a Jet store and a Jet Mart.
The 89-year-old retailer opened its first Edgars store in Joubert Street, Johannesburg, and has grown to have more than 1 300 shops across Southern Africa with nearly 12-million customers.
Edcon first alluded to the downsizing of space in a recent quarterly statement and has already closed more than 200 stores.
“I am a cynic about whether retail is changing, but what is fundamentally changing is the retail customer,” Pattison said.
Edcon reported a 9.4% decline in group retail sales to R7.6-billion for the third quarter of 2018, which ended on December 23. Total group revenue declined 8% to R8.187-billion.