InBound SA - Business Volume 4 I Issue 1 | Page 12

Q & A RETAILABILITY

RIGHT-SIZING RETAIL FOR GROWTH

NORMAN DRIESELMANN, CEO OF RETAILABILITY, LEADS EDGARS’ RIGHT-SIZING STRATEGY. BY REDESIGNING LAYOUTS AND HALVING FOOTPRINT, THE RETAILER BOOSTED TURNOVER DENSITY, CUSTOMER ENGAGEMENT, AND PROFITABILITY.
WHAT WAS THE KEY CHALLENGE PROMPTING THE LAUNCH OF THE RIGHT-SIZING STRATEGY?
The fundamental challenge was how Edgars could re-cement its relevance within the retail landscape for the foreseeable future. Retail space had grown over time, but customer behaviour and preferences had shifted towards smaller and more focused store formats. Large footprints were no longer automatically productive or appealing. Right-sizing was about addressing inefficiencies in space utilisation while ensuring that stores were aligned with how customers shop today.
YOU’ VE DESCRIBED RIGHT-SIZING AS MAKING STORES“ STRONGER, NOT SMALLER.” HOW DO YOU DEFINE“ STRONGER” IN OPERATIONAL AND CUSTOMER TERMS?
It was mission-critical for the new layouts to demonstrate better value to customers while not losing an appropriate level of aspiration. Our new store model achieves this. From a customer perspective, it means easier navigation inside what is still a big box format, but with better adjacencies and flow between categories like fashion and beauty, improved service levels, and a more engaging in-store experience. Operationally,“ stronger” means higher turnover density, better stock flow and improved cost efficiency – all driving sufficient improvement in profitability. That is, a profitability that allows for long-term sustainability as we look towards the next 97 years of Edgars.
CAN YOU SHARE ANY MEASURABLE RESULTS OF THIS, SUCH AS THE CANAL WALK STORE, FOR EXAMPLE?
Canal Walk is a strong illustration. By halving the footprint and redesigning the layout, we nearly doubled turnover density while improving both the customer experience and bottom-line profitability. The store still has the big box format at 5 600m ², but it now trades more efficiently, with better category performance and a noticeably improved customer journey.
BEAUTY NOW REPRESENTS NEARLY A THIRD OF TOTAL SALES. HOW HAS INTEGRATING IT WITH FASHION ENHANCED CUSTOMER ENGAGEMENT AND SALES?
Edgars has a history of bringing fashion and beauty to the South African market. Beauty brings both frequency and aspiration to the overall Edgars experience; as such, it’ s a key pillar of our go-forward strategy. Integrating Fashion and Beauty creates a more complete lifestyle destination inside our stores as we strive to deliver an emporium experience for the mid-to-upper market. Customers spend more time in-store, cross-shop more effectively, and return more often.
HOW ARE YOU ALIGNING PHYSICAL STORES WITH ONLINE CHANNELS FOR A SEAMLESS CUSTOMER EXPERIENCE?
Physical and online stores are no longer separate strategies. The mission for us is to
10 INBOUND SA / JANUARY 2026