Sunday Times (Johannesburg) - September 25, 2005
Adele Shevel

Both chains are in the Edcon group, which made a decision several years ago to position the two brands firmly in their respective target markets.

Jet's focus is on the lower- to middle-income level with a relatively restrictive budget, while the Edgars brand is positioned towards the middle- and upper-middle-income customer.

Richard Ashton, marketing executive of the Edcon discount division, says: "Regular research has given us a really good handle on the lives, demands, and needs of our customers and the difficulties they face, and we've created everything around that knowledge.

"The buyers and executives of the company are careful to provide offerings that best suit their customers' needs. We are very community-focused, and for that the company has been richly rewarded.

"We make sure that we offer fashionable goods at the lowest possible prices with acceptable quality. We do a balancing act - good quality at the lowest possible prices."

The other main reason for Jet's success is its community focus. Its Jet Club magazine has more than 1.3 million members and more than 2 million readers. It's the biggest club magazine in the country and is positioned to give back to the community. There are annual award ceremonies for those who best serve their communities.

The Jet Club offers its members a basket of benefits, such as the HIV Careline. "If one of our club members contracts HIV accidentally, we will provide them with a full HIV prevention programme, which could include an ARV [antiretroviral] programme," says Ashton.

Another benefit is a funeral plan. Jet Club members, who pay about R13 a month membership, are entitled to the magazine and funeral cover to the value of R3000 for a funeral, which includes a free funeral assistance help line. There is also a legal help line, an emergency help line and a baby-care help line.

Ashton says Jet and Edgars do not compete with each another because of the way the two chains are positioned. Edgars is a mall-based department store whereas Jet is a high-street or rural community-based store.

Though Edgars is an older brand, Jet goes right into South African communities, as well as neighbouring countries.

Edgars' basket of benefits is completely different from what is offered to the Jet membership.

The Edgars brand has been around for 76 years. The Edgars Club magazine has close to 800000 monthly subscribers and it offers funeral insurance, cellphone insurance, account protection, travel discounts, cinema discounts and road assistance.

Rob Dodds, marketing executive of the department stores division of Edcon, says there is a very wide product range of branded and private-label merchandise, so the consumer can get anything from the most expensive face creams to affordable clothing.

The brand crossover happens when the Jet customer wants to aspire to a little more and wants, perhaps, to buy a pair of Levi's jeans or Nike trainers.

"We're seeing a transition in the market. People who were Jet customers are getting more disposable income and they are transitioning," says Dodds.

The discount division plans an aggressive expansion of its stores (Jet, Jet Mart, Jet Shoes and Legit) over the next few years.

The success is borne out by key performance indicators. In financial 2005, sales jumped 35% to R4.8-billion and gross profit increased 38% to R1.9-billion. The number of stores increased by 13 to 320 around the country.

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