Edcon footprint likely to shrink further
Stanlib estimates indicate that Edcon occupies about 6% to 7% of the total South African retail space
Buoyant Christmas sales are unlikely to be enough to stave off store closures at Edcon, and the impact of poor sales and low trading densities is likely to see the group further trim its retail footprint. This week Keillen Ndlovu, the head of listed property at Stanlib, told Business Times: "We believe that Edcon is likely to close more stores, more so the underperforming ones and the ones that do not fit into their strategy." Stanlib estimates indicate that Edcon, which owns Edgars, Jet and CNA, occupies about 6% to 7% of the total South African retail space - owned by both listed and unlisted companies - and about 10% of the space in mainstream malls. Ndlovu said Edcon stores would be closed when leases expire, but in other cases the size of stores would be reduced. The group will also be looking at renegotiating rental terms based on turnover, whereby the landlord would share the upside and the downside. Ndlovu said the primary reason for the closure of stores would be underperfo...
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