Retailability CEO Norman Drieselmann Advocates for ‘Right-Sizing’ as the Future of Sustainable South African Retail

Norman Drieselmann explains how Edgars reduced its footprint by 20% to drive savings and why smaller stores are the future of South African retail.

By: AXL Media

Published: Mar 25, 2026, 8:25 AM EDT

Source: Information for this report was sourced from Business Talk

The Strategic Rejection of Large Scale Retail Footprints

The traditional model of massive, multi-level department stores is being systematically dismantled by Retailability as part of a broader "right-sizing" strategy for the Edgars brand. CEO Norman Drieselmann, speaking on the Business Talk platform, argued that the industry's historical obsession with expansive floor space has become a liability in the modern economic climate. By reducing the overall Edgars footprint by more than 20% since taking control of the brand, the group has moved to insulate itself from the high overheads that contributed to the eventual collapse of its previous owner, Edcon. This lean approach is designed to prioritize profitability over sheer physical presence, signaling a permanent shift in how the group views retail real estate.

Canal Walk Case Study in Operational Efficiency

A central pillar of this transformation is the dramatic reduction of the Edgars store at Canal Walk, where the retail space was slashed by 50%. Drieselmann noted that this aggressive downsizing has yielded a significant positive impact on the retailer’s bottom line without compromising the customer experience. By optimizing the product mix and focusing on high-turnover categories, the smaller store format has proven to be more efficient and easier to manage than its sprawling predecessor. This case study serves as a direct message to property groups and landlords that the era of the "anchor tenant" demanding vast, underutilized square footage is ending in favor of more specialized, high-density layouts.

Navigating the Complexities of Retail Downsizing for Landlords

The move toward smaller store formats presents a complex challenge for South African property groups, investors, and shareholders. Drieselmann explained that while downsizing provides massive savings for the retailer, it requires a fundamental renegotiation of the relationship between tenants and landlords. Property owners are increasingly forced to find creative ways to fill the gaps left by shrinking department stores, often by subdividing space for smaller boutique brands. For Edgars, this strategy is not merely about cutting costs, but about ensuring long-term stability and creating a more predictable dividend path for Retailability's stakeholders.