Lockdowns a heavy blow for The Foschini Group’s turnover

LISTED homeware and fashion retailer The Foschini Group (TFG) yesterday reported a 43 percent slide in turnover during the three months to June 27, compared with a year earlier, after being hit hard by Covid19 lockdowns across the three major territories in which it trades.

TFG, whose 29 brands include Foschini, Markham and TotalSports, said significant trading disruptions were caused by government-enforced lockdowns and regulations on social distancing in South Africa, the UK and Australia.

“The global economic environment remains constrained, and consumers continue to experience significant economic pressure,” said the company.

TFG Africa’s retail turnover fell 38.4 percent during the period, predominantly as a result of all

South African stores being closed between March and April.

The group said, however, that 80 percent of the stores re-opened in May under strict Covid-19 safety protocols.

In April, TFG Africa’s retail turnover plummeted 92.1 percent compared with the previous period last year. In May, turnover grew

0.6 percent despite 447 jewellery stores being closed during the month due to the lockdown restrictions.

Excluding the jewellery stores, retail turnover growth in May was up 7.9 percent compared to the previous financial year.

The group said all TFG Africa stores re-opened from June 1 with subdued trade.

Retail turnover declined

13.8 percent compared to the same period in the previous financial year with lower levels of footfall in regional shopping centres.

The group said credit retail turnover at TFG Africa had contracted by 47.1 percent compared to the same period in the previous financial year.

TFG London’s pound sterlingdenominated retail turnover declined 68.5 percent for the three months to June 27 compared to the same period in the previous financial year.

“Government-enforced lockdowns that temporarily prevented all physical store and concession sales in almost all of TFG London’s UK, European and Rest of the World operations,” TFG said.

Australian dollar-denominated retail turnover fell 42.4 percent for the three months to June 27 compared to the same period in the previous financial year.

All Australian stores were closed on March 27 in response to government restrictions and regulations on social distancing, and the re-opening of outlets commenced in April, with all outlets re-opened by the end of May.

“Trade has been impacted by individual states having different levels of restrictions based on the number of active Covid-19 cases, and recently the Victorian Government announced a lockdown in parts of the state due to indications of the second wave of infections, although stores are expected to remain open on minimum rosters,” said the group.

TFG shares rose 9.09 percent on the JSE yesterday to close at R67.83.