TFG has reported an 11.5% increase in sales for the first quarter to R14.4bn, supported by the acquisition of British fashion and lifestyle retailer White Stuff.
Group online sales for the 13 weeks to June 28 grew by 45.5%, contributing 14.5% to total retail sales, from 11.2% a year ago, the group said in a statement on Thursday. Africa online sales increased by 40.2%, driven by its Bash platform.
Bash was launched in 2023 to unify TFG’s previously fragmented online presence, consolidating more than 15 separate brand websites into a single, customer-centric platform.
The group said Retail Liaison Committee data showed its market share in SA had increased by 50 basis points during the period in the TFG Africa segment as it outperformed total market retail sales growth.
Sales in the TFG Africa segment rose 5.2% in the first quarter due to the Easter holidays falling in April and a robust sales performance compared with the year-earlier period. Pre-election consumer caution had weighed on the group’s 2024 first quarter.
While the weak UK economy weighed on TFG London, the addition of White Stuff to the portfolio resulted in sales increasing by 57.7%. Excluding White Stuff, sales were down 2.6% in pounds.
TFG acquired White Stuff for an undisclosed sum in October 2024. Established in 1985, White Stuff specialises in “unique, thoughtfully designed clothing and accessories for women, men and children”. The company has 113 stores and 46 concessions in the UK within John Lewis, Marks & Spencer and other independent retailers.
TFG CEO Anthony Thunström said at the time of the acquisition that it was a milestone for the group’s medium-term strategy to achieve critical mass in the UK.
TFG Australia’s sales were down 2.8% year on year in Australian dollars in difficult trading conditions with sustained high inflation and interest rates affecting consumers.
The group said global and domestic business conditions had been volatile due to tariff uncertainty, hindering broader economic recovery and resulting in subdued GDP growth.
“In TFG Africa we remain confident in our ability to sustain gross margin and control costs,” it said. The first half is expected to be particularly challenging given the slow June trade, inconsistent trends and a promotional winter in SA.
The group expects to open more than 100 new stores in the 2026 financial year, while optimising its existing store portfolio.
For the three weeks to end July 19, TFG Africa’s sales had increased by 9.2%, it said.
“While the UK economy remains under pressure, we are encouraged by the continued strong performance of White Stuff. Sales growth was 68.8% [in pounds] for the three weeks ended July 19. Excluding White Stuff, sales growth is 6.3%,” TFG said.
In Australia, sales have contracted by 4.1% [in Australian dollars] in the three weeks ended July 19. Though trading conditions remained challenging, the economy appeared to be stabilising, with two 25 basis point interest rate reductions in recent months.
By market close TFG’s share price had fallen 5.72% to R112.55.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.