[Avoiding the same mistake. Opening more stores caused Edgars' downfall before it was put into Business Rescue and (only) the profitable branches were sold. At the time Edgars opened many more shops but the group Turnover stayed the same (showing that the market was saturated) leading to greater expenses in terms of rent, salaries etc. which pushed Edgars into a loss situation]
Margins before market share — it’s not a space race, says Retailability CEO
The big retailers continue to roll out stores despite a tough economic environment. But Edgars is holding back on space expansion, having decided not to chase market share at the cost of bottom-line profit.
Edgars has reduced its coverage by just over 18,000m² of space and closed three underperforming stores in the past nine months, all in smaller outlying areas... [Its stores also had lots of wasted space - other retailers had better Revenue per square meter - which is why they are reducing the size of the stores - the same stock quantities in a smaller shop thereby saving on rent and also negotiating better rental rates per m3]
https://lnkd.in/dsB595iv
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1wSounds like an insightful session—exciting to hear how retail is back in the spotlight and attracting more investor attention.