Clothing retailer, Edgars Stores Limited, experienced a substantial surge in its shares, up by nearly 6 percent on Monday, following the appointment of several new senior leaders to its management team.
Among the new appointments is Sevious Mushosho as the group’s new chief executive officer, replacing Tjeludo Ndlovu, who resigned after 11 years of service. She joined the group in 2012 as a group accountant.
Following the management change the shares of the company on Monday appreciated by 5,60 percent to close at $99.74.
Edgars is currently the 29th most valuable stock on the ZSE with a market capitalisation of $59,4 billion, which is about 0,477 percent of the Zimbabwe Stock Exchange equity market.
The company began the year with a share price of $9,50 and has since gained 950 percent on that price valuation, ranking it 17th on the ZSE in terms of year-to-date performance.
“Mushosho has worked at executive level in various companies in Zimbabwe, Zambia, Malawi and Mauritius, including Sub Sahara Capital Group, Distribution Group Africa, AfriAsia Holdings Limited and Innscor Africa among others,” the company said in a notice to shareholders.
“He has been on the Board since July 2022 as a non-executive director and from May 2023 as the group chief operating officer.”
Tinevimbo Shava, an economist, shared insights on these significant changes at Edgars.
He noted: “The appointment of Sevious Mushosho as the new chief executive represents a potential catalyst for Edgars. With his extensive executive-level experience across multiple countries, it is evident that the company aims to leverage his expertise to navigate a dynamic retail landscape.”
Happiness Vundla, the group chief finance officer of the group, resigned from the board and left the group on October 31, 2023.
The group appointed Peter Mnyama as the executive director of retail chains, effective November 1, 2023.
“A career fashion retailer with over 25 years’ experience, Peter joined the Group as merchandise trainee back in 1998. He rose to Group merchandise controller in 2004 and later became express merchandise executive.
“He later moved to Edcon in South Africa in 2008 and later returned to Zimbabwe as the marketing and sales executive for Carousel Private Limited in 2013, a role he kept until 2016 when he became merchandise executive for the Jet Chain.
“In 2020 he became the Jet Chain managing director and then moved to become Edgars Chain managing director in 2022,” reads the notice.
Shava added; “The departure of Tjeludo Ndlovu and Happiness Vundla, coupled with the appointment of Peter Mnyama, suggests a strategic shift in leadership. Mnyama’s extensive background in the fashion retail sector could bring a fresh perspective to the retail chains, potentially revitalising the brand.”
Mnyama holds a BCom Honours degree in Marketing, an Executive Development Diploma from ICAZ and a number of planning and management development qualifications.
On the other hand, the group appointed Mark Robb as non-executive director, effective November 1, 2023.
“Mark is a skilled IT professional with over 22 years’ multinational experience across Fintech, Banking, FMCG, media, manufacturing and agricultural sectors. He has an Honours Degree in Information Systems and Management from Rhodes University in South Africa and many other IT qualifications obtained from various Institutions.
“The Board congratulates Mark on his appointment and looks forward to his contributions from his diverse ICT knowledge,” reads the notice.
Regarding the appointment of Mark Robb as a non-executive director, analyst Namatai Maeresera, commented; “Robb’s diverse IT experience can contribute to Edgars’ technological advancements, which are crucial in today’s retail environment.”
The market’s positive response to these changes indicates that investors are optimistic about Edgars future under its new leadership team and the company’s strategic decisions are being closely watched by industry experts.
It is interesting to see the positive market reaction to the appointment of Mushosho as Edgars new chief executive.
The new leadership team seems to have a strong background and experience in various industries, which could be a good sign for the company’s future prospects as change at the top can often bring fresh perspectives and strategies.