Edgars reinvents itself as credit giant in Zimbabwe’s struggling retail sector

Zimbabwe’s retail sector has in recent years been weighed down by the rapid rise of informal traders, currency volatility and subdued consumer spending, forcing many players to experiment with survival strategies, but Edgars Stores Limited has seemingly emerged as a standout case, successfully repositioning itself from a traditional clothing retailer into a diversified commercial platform anchored on credit, manufacturing and US dollar dominance.

Latest financial results for the year ended January 2026 reveal a business model that is no longer anchored on traditional retail alone, but one increasingly driven by financial services, vertically integrated production and currency strategy.

The clearest signal of Edgars’ transformation lies in the growing weight of its credit business.

Revenue from microfinance and debtor accounts reached over US$7.1 million, contributing a significant share to total revenue of US$41.2 million . This places financial services alongside, and in some respects ahead of, core merchandise sales as a driver of profitability.

The company’s retail debtors’ book expanded to US$12.6 million, with active USD accounts rising to 83,700 and utilisation improving sharply.

At the same time, asset quality strengthened, with current accounts rising to 85.5% and expected credit losses declining .

This is not incidental growth, it reflects a deliberate pivot.

In an economy where disposable incomes are constrained and liquidity is tight, extending credit has become the gateway to sustaining consumer demand.

Edgars is effectively financing its own customers, turning shoppers into long-term credit clients and embedding itself deeper into household cash flows.

“The USD retail debtors’ book closed at USD 12.6 million (2024: USD 11.6 million), representing growth of 8.6% year-on-year. Active USD accounts increased to 83.7 thousand (2024: 81.3 thousand), while credit limit utilisation improved to 30.6% from 16.8% in the prior year.

“Management remains focused on disciplined cost management, merchandise optimisation and prudent credit deployment to support sustainable revenue growth,” the company stated.

The result is a hybrid model: part retailer, part lender.

At the same time, Edgars is reducing its reliance on external suppliers by strengthening its internal manufacturing capacity through its Carousel division.

Production volumes surged, with units supplied to retail chains jumping 47% to 448,000 units . The group also invested over US$1 million into retooling and expanding production capacity, aimed at improving efficiency and lowering costs.

By controlling more of its supply chain, Edgars is insulating itself from import constraints, currency volatility and supplier pricing pressures, persistent risks in Zimbabwe’s retail sector.

It also allows the company to respond faster to demand trends while protecting margins.

Manufacturing, once a supporting function, is now becoming a core pillar of competitiveness.

Edgars has fully adopted the US dollar as its functional currency, citing the dominance of USD transactions in the market.

This aligns with broader dollarisation trends across Zimbabwe’s formal sector, where businesses are increasingly pricing, lending and accounting in hard currency.

Edgars board chairman Themba Sibanda acknowledged this saying: “Dollarisation trends intensified, with United States dollar transactions increasingly dominating formal sector trade.”

The group has also actively reduced exposure to local currency risk. The ZiG debtors’ book was scaled down significantly before being cautiously reintroduced, while USD-denominated lending remains the priority.

Zimbabwe’s operating environment remains characterised by tight liquidity, high interest rates and fragile local currency confidence.

By anchoring its business in USD, Edgars is stabilising revenues, preserving value and maintaining pricing consistency in an unpredictable monetary system.

Edgars, a Victoria Falls Stock Exchange listed entity founded in 1948, is evolving into a diversified commercial platform, one that blends retail, finance and production in response to Zimbabwe’s complex economic realities.