Retail Apparel Group –the parent company of Connor, YD and Tarocash – has seen a 0.6 per cent lift in sales in the five weeks to November 1, a swing up from its 0.5 per cent sales slump in the first half to September 30.
This is according to the group’s overarching parent company, The Foschini Group in South Africa, in a trading update to market late last week.
The recent lift of 0.6 per cent in the early third quarter followed a growth of 1.6 per cent in the second quarter and a contraction of 2.8 per cent in the first quarter.
During the first half, 26 stores were opened and 17 were closed, with TFG Australia now trading out of 619 stores in two countries.
While store sales declined by 0.6 per cent, TFG reported that local online sales were level, contributing 7.7 per cent to total local sales.
“As a result of expenses growing ahead of sales, driven by costs from new stores and continued inflationary pressure on expenses, segmental EBIT declined by 18.4 per cent.”
TFG also reported that its other key markets, both South Africa and London, are also facing weak macroeconomic conditions.
In South Africa, TFG pointed out that consumers remain under pressure, and despite inflation easing somewhat, subdued GDP growth and high unemployment remain. TFG Africa sales grew 3.7 per cent for the first five weeks of the third quarter.
In the United Kingdom, TFG’s new fashion acquisition White Stuff drove total sales growth of 34.9 per cent in the early third quarter. Excluding White Stuff, which is not comparable for the period, sales declined by 0.7 per cent.
“While the first half has been difficult, the group remains focused on operational resilience, prudent capital allocation, and leveraging its platform strengths and digital channels to drive growth,” TFG reported.