FOSCHINI GROUP WELCOMES SURGE IN ONLINE SHOPPING

THE SURGE in online buying in South Africa had not slowed with the easing of lockdown restrictions, chief executive of The Foschini Group ( TFG) Anthony Thunström said yesterday. At the end of the last financial year, TFG’S South Africa stores were achieving 2 percent of turnover through online sales, up from 1 percent at the start of that year, and the figure was between 5 and 6 percent in the year to date, said Thunström. “We foresee us reaching up to 20 percent online sales in the not- too- distant future,” he said. There had been sharp growth in casual clothing sales, as people working from home during lockdowns in South Africa, the UK and Australia meant less sales of formal and business wear, a trend he expected to see continue for at least six months. In the UK, TFG’S stores were achieving up to 35 percent of turnover online. The weak economy meant TFG had continued to slow its credit sales growth. At one stage in the past, up to 56 percent of TFG’S sales were on credit; a year ago the figure was about 25 percent, but the figure was currently at 15 percent, and in some months this figure was in single digits. Cash accounted for about 60 percent of sales in South Africa, “which is a good position to be in at present”, said Thunström. |