Jet Stores to close some shops

MARIA SHAANIKAJET Stores Namibia will soon close down some branches across the country as part of the company’s turnaround strategy.

Edcon South Africa, the company which owns Jet Stores, Edgars and CNA, yesterday told that they had identified stores which were underperforming.

The group has 187 stores in eight countries outside South Africa. Forty-three of these outlets are in Namibia, where about 700 people are employed.

Group spokesperson Vannie Pillay said Edcon has a long-term strategy to deliver a more efficient store portfolio, including the decision on space reductions, store closures and store formats to increase trading densities.

Pillay added that the turnaround strategy is critical to Edcon, and is also applicable to Namibia.

“The impact of this initiative means a reduction of our trading space, the right-sizing of our store portfolio, and repositioning our key products,” he added.

He could not give the specific number of stores expected to close as he said this was an ongoing internal process.

“We will, however, communicate any decisions about store closures to our employees and other stakeholders, in line with our consultation process,” Pillay said.

He added that the retail chain would make an effort to accommodate the affected staff by ensuring that they receive the necessary assistance and support during this process.

According to the Edcon website, the retailer has been in operation for 89 years, and leads the way in the retail sector in helping the communities it serves.

Pillay told earlier this year that Edcon was going through a restructuring and recapitalisation process.

Asked about it, he said Edcon is in its final stages of all stakeholder engagements, and that creditors had extended waivers to allow time for the implementation of the proposed recapitalisation plan approved by the Edcon board.

“This will allow sufficient time for the necessary due diligence and governance processes to be completed,” he noted.

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