Retail chain Edgars Ltd has managed to secure a supply agreement to the United States.
The company, whose main line
of business is in the manufacturing and sales of clothing, has managed to secure the contract on a trial basis.
The contract, which will see the company manufacturing clothes at its Carousel Factory for export, is expected to contribute significantly to earnings.
Group managing director Raymond Mlotshwa said the development would enable his company to be exposed to the export market and to develop into a fully-fledged export venture.
“As we have said, the exports to the American market will allow us to be exposed to the export side of business and at the same time, if successful, will see the company develop into a fully-fledged export entity,” said Mlotshwa.
He said the trial project would also allow the company to fully utilise its clothing factory which had seen a decrease in production because of slow sales and orders from traditional customers.
“Production levels at our factory had been reduced because of the slow sales in our shops and also because of low demand from our other customers who had provided the bulk of the orders,” said Mlotshwa.
He said the insurgence of cheap Chinese clothes had impacted negatively on the company’s sales in most of its retail shops.
“The Chinese products have affected our sales volumes because of the continued increase in prices of our goods, mainly because of inflation leading to most of the customers opting for the cheap clothes that have saturated the market,” said Mlotshwa.
He said the company had found itself overstocked after it had recorded poor sales during the festive season leading to the bulk of the company’s cash being tied up in stock.