Edgars restructures stores as landlords shift focus from size to sales density

The restructuring of Edgars’ space in selected malls reflects how landlords are trimming oversized floor areas inherited from a different retail era to improve trading density and better align space with existing retail demand.

While Edgars no longer occupies the vast department-store footprints that once defined it, it still retains elements of anchor status in many centres, though it now trails behind dominant grocery tenants as a driver of foot traffic.

Edgars, once part of Edcon, fell into financial trouble and entered business rescue in 2020. It was acquired by Retailability, which has since streamlined stores, refocused the brand on fashion and beauty, and retained its presence in major malls.

“Our performance over the past few years has shifted landlords’ perception of Edgars from one of cautious optimism to that of a highly relevant brand, now considered key to many regional and major shopping malls across the country,” said Retailability CEO Norman Drieselmann.

Two weeks ago, Growthpoint announced it is reconfiguring Edgars at Walmer Park in Gqeberha, shrinking the 4,680 square metres store to a more efficient 1,982 square metres format. The R75m upgrade also creates space for additional retailers, part of the landlord’s push to reinvest in high-performing malls.

At its peak, Edgars had more than 200 large-format stores across South Africa, ranging from 3,000-8,000 square metres. Today, stores are smaller — at about 1,500–2,000 square metres — and focused on fashion, footwear and beauty, with layouts designed for efficiency rather than size.

Drieselmann said Edgars still maintained the fashion anchor position as its market share still remained strong despite the resizing.

The resizing of department store space in some malls does not necessarily indicate retreat. In several cases, landlords and retailers have opted to recalibrate floor space in line with existing trading patterns, he said.

“As beauty and personal care generate more frequent store visits than apparel, these segments have played a key role in adjustments by increasing sales density within a smaller footprint. Footfall remains critical to mall owners and supports the performance of adjacent tenants,” Drieselmann said.

The latest South African Property Owners Association’s Retail Trends Report, compiled with MSCI, shows that food service has been the strongest driver of cumulative growth since mid-2022, while health and beauty continue to expand steadily. Apparel growth, however, slowed sharply in smaller formats in the fourth quarter of 2025, reflecting more selective discretionary spending.

Growthpoint SA CEO Estienne de Klerk said the Reit has been working closely with Edgars’ management team to optimise store layouts and align floor space with existing demand.

“The objective is to give retailers more appropriate space. Often, they’re trading on oversized floor plates [areas], so reducing them boosts trading density, improves sales per square metre, and lowers rental costs, ultimately enhancing profitability,” De Klerk said.

Drieselmann said due to South African law requiring Reits to distribute at least 75% of taxable earnings annually, reliable rental streams are crucial, leaving little room for instability.

“Against this backdrop, the conversation between landlords and anchors has shifted. Gross lettable area is no longer the key metric instead turnover density — what a retailer generates per square metre — is now attracting closer attention,” he said.