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Edcon's smart growth strategy: at the center of Edcon's strong vision to rationalize its supply chain is its Sourcing Excellence initiative, which is streamlining processes from concept to retail.

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What's the secret to long life? Some say it's being able to change with the times, and the experience of South African retail chain Edcon provides ample evidence for this theory. Founded in 1929 and still going strong 78 years later, Edcon continues to pursue both growth and excellence.

Edcon began as the Edgars department store in Johannesburg. Today the company operates more than 1,000 stores in South Africa and neighboring countries, with 10 retail brands serving customers in all types of locations--shopping malls, city centers and local business districts. Its department stores division serves middle- and upper-income markets, while its discount division serves middle- to lower-income markets.

Over the next three to four years, Edcon plans to open an additional 300 stores, including new and existing retail brands, in the fast-growing South African market. Because it already controls nearly a third of the clothing, footwear and textiles market in South Africa, Edcon's acquisitions in this area are constrained by antitrust regulations. Recently, the company began acquiring brands in other retail categories--notably stationery, health and beauty, and housewares.

Edcon's ownership structure also has changed over the years. Originally privately held, the company became a subsidiary of The South African Breweries (SAB) in 1983. It was spun off from SAB in 1999 and traded on the Johannesburg Stock Exchange until 2007, when it was purchased by the Boston-based private equity firm Bain Capital for more than $3.6 billion....

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