Edcon fails to make the grade
The retail group’s sales and revenue fall in third quarter
Unlisted retail group Edcon has recorded a poor quarterly performance with a decline in sales and revenue. On Wednesday, the group reported a 9.4% drop in retail sales for the third quarter while total group revenues decreased 8% to R8.2bn owing to a decrease in retail sales of R795m compared with the prior period. Edcon attributed the drop in retail sales to a reduction in promotion activity compared with the third quarter of 2017, following the introduction of better entry-price points in fiscal 2017. The quarterly performance was also affected by the sale of the Legit business, the exit of nonprofitable international brands and the closure of unprofitable stores.