Foschini Group builds on bumper 2019

Retailer The Foschini Group [JSE:TFG] pushed up turnover 5.9% for the nine months to 28 December 2019, compared to the corresponding period in 2018.

Retailer The Foschini Group [JSE:TFG], whose brands include Foschini, American Swiss, and Markham occupying space in major centres, went against the prevailing retail trend by producing positive trading updates in a difficult economy.

The group pushed up turnover 5.9% for the nine months to 28 December 2019, compared to the corresponding period in 2018.

Black Friday is becoming an increasingly important for SA retailers, with the Foschini Group on Friday referencing record sales on the key trading date in its latest trading update.  

"The Foschini Group Africa showed resilience across all merchandise categories and despite the high base of the past several years, produced turnover growth of 5.9%. This included a new record high Black Friday performance, which helped to offset the negative impact of the load-shedding experienced in South Africa during December," it said.

The retailer's shares were trading up 2.2% at R159.36 a share at noon.

Within Foschini's African operations, turnover at its key clothing division grew by 6.5%. Homeware grew by 7.8%, cosmetics 1%, jewellery 2.3% and cellphones 4.8%. 

"Cash turnover grew pleasingly by 11.2% whilst credit turnover declined by -1,0% as a result of the group’s prudent approach to credit in the current constrained economic environment," it said.

The group's international operations showed mixed results. TFG London’s turnover declined 1.1%, with the group noting "continued footfall declines on the high street amidst Brexit uncertainty".

Turnover rose by 11.4% in its Australian division, which it said was again given a boost by record Black Friday sales.

Its peer, struggling retailer Edcon has shut the doors of one its underperforming Edgars stores in Rosebank Mall as a cost cutting measure.

The closure of the Rosebank Edgars outlet – a store almost as big as a rugby field – follows last year’s closure of 150 other underperforming stores under the group, including various Jet, Edgars and CNA stores.