South African fashion retailer TFG buoyed by strong demand
Reuters
South African fashion retailer TFG reported a 21.6% rise in half-year turnover on Wednesday, as affluent customers snapped up dresses and shoes.
Higher-income consumers have largely shrugged off the impact of inflation to spend on discretionary goods including apparel and bags, buoyed by their savings during the lockdowns.
The company also tapped into its growing localised, quick response clothing supply chain and sourcing model to shield the business from international supply chain disruptions.
Shares in TFG closed 3.74% firmer at 136.32 rand.
TFG Africa’s turnover rose by 14.7% in the first 26 weeks of the retailer’s new financial year which began in April. Sales were underpinned by clothing, homeware, cosmetics and jewellery sales growth, it said in a trading update.
TFG London’s performance was moderated by growing consumer pressure and rising levels of inflation, but increased mobility of people and a growing demand for its key categories have supported sales, up 23.5%, in the region, TFG said.
TFG Australia grew retail turnover by 42.3%.
Overall group online retail turnover performance continued to normalise with growth of 5.1%, as shoppers returned to physical stores and become less dependent on online shopping.
The growth in group sales was achieved despite increasing inflation for its low income shoppers and increased levels of rolling power cuts in South Africa, leading to 80,000 lost trading hours.
