TFG Africa sees online growth after closing 29 stores
The fashion retail giant posts Q1 online shopping turnover growth of 23.2%, with its e-commerce revenue contributing 9.8% to total group turnover.
Fashion retail chain TFG Africa says it maintained steady business performance in the first quarter of 2021, with online shopping turnover growth of 23.2% compared to Q1 2020.
In the group’s trading update for Q1 2022, TFG says cash turnover for TFG Africa grew 55.5%, compared to Q1 2021. Like-for-like turnover growth for TFG Africa of 11.1% was reported for May and June 2021, compared to May and June 2020.
Its e-commerce revenue contributed 9.8% to total group turnover, as more customers have taken to online shopping channels since the onset of the COVID-19 pandemic.
According to the statement, TFG Africa opened 71 new stores during the quarter, while 29 stores were closed.
TFG owns over 30 retail brands that trade across SA, in fashion, jewellery, accessories, sporting apparel, cellular, homeware and furniture. Brands include Archive, Duesouth, Exact, Fabiani, Foschini, @home, Markham, Relay Jeans, Sportscene, The FIX and Totalsports.
In 2018, the retailer launched its myTFGworld.com online marketplace, which it says exceeded growth expectations in the first two years of inception.
The online marketplace offers local consumers a one-stop shopping experience across over 31 of its affiliate brands, such as travel, gifting, toys, clothing, books and flowers.
With its network of stores, the group says it is working to extend its click-and-collect points, to allow customers to buy online and “pickup in-store”, at over 3 000 locations around SA.
While the majority of the group’s outlets traded strongly during the past quarter, it notes that consumer spend, particularly for TFG Africa, remained muted as uncertainties around further COVID-19 outbreaks, extended lockdowns and the slow pace of the vaccine rollout adversely impacted consumer confidence.
“In TFG Africa, the third wave of COVID-19 infections resulted in South Africa returning to adjusted level three lockdown restrictions from 15 June 2021, adjusted level four lockdown restrictions from 28 June 2021 and then back to adjusted level three lockdown restrictions from 26 July 2021,” according to the statement.
Despite the challenges, the group says it continues to invest for the long-term in line with its strategic priorities, while further strengthening its digital drive, as well as local supply chain and manufacturing capabilities in SA.
The company last month introduced TFGLabs, to attract the continent’s best tech talent, as it invests significantly in technical capabilities to accelerate its digital strategy.
TFGLabs aims to attract tech talent to develop software and solutions that will redefine the shopping experience and reshape the retailer’s omni-channel capabilities.