Axia Posts Mixed Q1 as Economy Hits Premium Sales

Oscar J Jeke- Zim Now Reporter

Retail and manufacturing group Axia Corporation posted a mixed performance for the first quarter of 2025, with strong gains in bed and home goods sales offset by weak demand for high-end furniture, reflecting the effects of Zimbabwe’s strained economy.

The group’s flagship retailer, TV Sales & Home, recorded a 15% increase in volumes, fuelled by competitive pricing and growing uptake of credit-based purchases. Two new store openings also helped expand the chain’s reach and drive sales growth.

“This was a direct result of our pricing as well as growth in credit sales,” Axia said in a quarterly update.

Axia’s bedding division, Restapedic, the country’s largest formal bed manufacturer, saw a 33% jump in sales volumes year-on-year, following a strong second half of 2024 where it sold over 25,700 beds, up 21% from the previous period.

The company attributed this performance to expanded production capacity and the opening of a new distribution hub in Bulawayo. Restapedic recently completed a new factory in Sunway City near Harare, now producing up to 5,000 beds monthly, with capacity to double that figure—making it one of Southern Africa’s largest bed manufacturing plants.

“The highest we have done was around November and December, when we did around 5,000 beds per month. We’re getting there,” said CEO Ray Rambanapasi.

However, increased volumes have come at a cost. Revenue per unit has declined as Restapedic lowered prices to compete with informal market players.

“We have to fight the market by offering a product that is of good quality, but at the same time affordable,” Rambanapasi said, adding that Axia’s integrated supply chain gives it an edge over informal competitors.

To strengthen its value segment, the company is rolling out Bed-Time, a new budget-friendly bed brand under TV Sales & Home, and plans to open more factory shops across the country to directly challenge the informal sector.

Elsewhere, Axia’s automotive arm Transerv reported a 10% increase in volumes, reflecting consistent demand for car parts.

In contrast, Legend Lounge, its premium lounge furniture unit, recorded a drop in volumes as consumers steered away from high-end purchases amid economic pressure.

“The decrease in aggregate demand for high-end lounge suites due to current economic pressures” led to the downturn, the company noted. The unit will now be merged into Restapedic to streamline operations and consolidate resources.