After shedding 132 000 buying and selling hours as a consequence of load shedding in the primary half of 2023, style and homeware retailer The Foschini Group has introduced that it is going to be investing in a number of initiatives to shield its enterprise from Eskom’s inefficiencies.
The JSE-listed retailer on Friday reported that its precedence shops all through the nation might be geared up with battery backup power, whereas a number of different TFG shops will obtain cellular level of sale gadgets to allow the continuance of commerce throughout darkish instances.
TFG says these interventions – estimated to price about R200 million in extra capex – will shield roughly 68% of its turnover in South Africa.
Consistent power cuts during the last six months to finish September 2022, has, in accordance to TFG, meant that the group misplaced 2.5 instances extra buying and selling hours than it did in the earlier interval.
Read: TFG loses 99 000 buying hours in 3 months on load shedding
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Despite the impression of load shedding and different headwinds, the group has reported a powerful efficiency, with a 23% spike in group turnover to R25.1 billion, in addition to a 23.5% rise in group retail turnover to R23.5 billion.
The proprietor of 33 labels – together with well-known manufacturers, Foschini, The Fix, Sportscene, Jet, @dwelling and American Swiss – reported a 24.7% rise in gross revenue to R11.6 billion, whereas working revenue earlier than finance prices strengthened by 40.7% to R2.6 billion.
Headline earnings per share (Heps) elevated by 17.9% to R1.5 billion, with the group declaring an unchanged interim dividend of 170 cents this era.
The group generated R1.5 billion in money from its operations this era. This, along with debt, was used to fund “profitable acquisitions and organic growth”.
“In TFG Africa, the post-pandemic economic recovery is progressing gradually, showcased by surprising resilience in consumer spending, despite the high unemployment rates, reduced consumer confidence and increased levels of Eskom load shedding,” CEO Anthony Thunström says.
The group’s Australian and English operations are additionally going robust, each reporting progress in turnover.
TFG Australia reported a 56.3% progress in turnover, coming off a comparatively low base in the earlier interval which was led by important Covid-19-related retailer closures.
TFG London registered a powerful efficiency in the primary quarter of the interval, supporting the 21.2% improve in retail outlet turnover in the course of the first half of the 2023 interval.
Read: TFG launches cellular community
Outlook
Despite anticipating growing stress on buying and selling situations and shoppers’ pockets, the group says it can proceed to make investments in progress initiatives that can assist strengthen its enterprise mannequin.
Effort may even go into integrating the newly acquired Tapestry enterprise into TFG to guarantee most worth creation for the group.
TFG additional added that it’s trying to the upcoming Black Friday and Christmas buying seasons to enhance its efficiency in the second half of the yr.
“The group continues to demonstrate its resilience and agility and is best positioned to trade through cyclical headwinds and stretched consumer wallets in all our territories,” Thunström says.
“We proceed to make investments in our key strategic initiatives to additional strengthen our differentiated enterprise mannequin. We have made progress on our strategic targets and speciality model enterprise portfolio and proceed to eye natural and inorganic progress alternatives.
“A specific focus will be on the Tapestry business to maximise the value from our investment,” Thunström provides.
Read: ‘Back-to-the-office’ bumper outcomes for Truworths
