Truworths is leaning on its UK business to steady group performance as consumers at home pull back on spending and tighter credit criteria weigh on sales.
In a trading update for the first 18 weeks of its 2026 financial year to November 2, the fashion retailer said group sales were flat at R7.2bn with a stronger performance from its UK chain Office offsetting weaker results in SA.
Sales at Truworths Africa fell 4%, while Office UK grew 6% in pounds and 7.7% when converted to the rand. Online sales for Office rose 5.2% and made up nearly 43% of total sales, the group said.
Truworths said SA sales were constrained compared with the same period last year, when promotions boosted turnover.
The retailer has also taken a cautious approach to granting credit, particularly to higher-risk customers, as tough economic conditions persist. That strategy reduced credit sales by 3% but improved the quality of its debtors’ book, with overdue balances down to 16% of total trade receivables from 18% a year earlier, it said.
Truworths Africa’s cash sales fell 6.3%, highlighting the financial strain on shoppers dealing with high living costs and weak income growth. Still, online sales in SA surged 23%, now contributing 8.3% to Truworths Africa’s sales compared with 6.4% a year ago.
Truworths said several initiatives were under way to reposition its local business for the future, including the consolidation of its distribution centres and a modest 1% increase in trading space for the year.
Despite muted sales, the group’s gross profit margin improved, supported by more disciplined discounting and strong trading in the UK. Its balance sheet remains healthy, with the company reinstating a share buyback programme in September thanks to a solid net cash position.
Office UK continued to be a bright spot for the retailer, maintaining its reputation as a leading partner for global sneaker and fashion brands. The division planned to grow its trading space by up to 12% in the current year as it expanded its footprint in the UK market, Truworths said.
Truworths will release its interim results on February 26.
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.