Victoria Falls Stock Exchange –Listed diversified group, Axia Corporation Limited (Axia)opened several new stores during the first half of the 2023 financial year with more expected to be completed later this yaer as the group intensifies its retail store network expansion strategy.
Axia operates subsidiaries which include TV Sales & Home, Transerv and Distribution Group Africa (DGA) which operates in Zimbabwe, Zambia and Malawi.
In its interim results statement, the group outlined a number of expansion projects in the pipeline which upon completion should translate into improved volumes and profitability.
Two new TV Sales & Home stores were opened in Harare during the first quarter and plans are underway to expand the retail store network which includes opening new stores in the second half of the financial year coupled with upgrades to outlooks of existing stores to improve customer experience.
It further announced that at least three new stores will be opened in the second half of the financial year with a new store concept, Bedtime Store, opening its first store.
“Volumes are expected to improve in the second half of the financial year following the addition of a new home appliances and homeware distribution business,” the group said.
At Transerv, the Company increased its store network by opening two retail stores in Harare. Plans are also underway to open at least six shops in the 2023 financial year as the business continues with the drive to lead the market and ensure that customers continue to access quality products whilst enjoying shopping convenience.
During the first six months to December 2023 the Group generated cash of ZWL$8,362 billion from operations which however was 3% down from the comparative period.
“Positive free cash generation enabled the Group to incur capital expenditure for the period totaling ZWL$2.7 billion. The Group’s free cash generation will enable it to execute exciting expansion opportunities,” said the group.
Currently TV Sales & Home – a leading furniture and electronic retailer in the country has 49 retail sites.
The group also operates through a network of 25 of its homegrown branded Transerv retail branches. Three of these Transerv retail branches were formerly franchised Midas stores. There are now 15 Transerv fitment centres operating from a total of 5,050m2 spread across the country.
DGA owns two warehouses measuring and leases three warehouses measuring 16,182m2 and has a fleet of 76 vehicles with varying carrying capacities of up to 40 tonnes each.
