South African fashion and lifestyle retailer TFG has reported a 21.6% rise in half-year turnover, 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.
Source: Reuters/Siphiwe Sibeko
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 R136.32.
Africa, international business
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, TFG 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 became 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.