The South African-based owner of Tarocash, YD and Connor – The Foschini Group – has reported a sales fall of 4.7 per cent in the 21 weeks to August 22.
TFG noted that its Australian market is currently facing the toughest trading environment – pointing to high inflation and elevated interest rates – with sales here further impacted by the repositioning of the Tarocash brand.
Financial year-to-date sales were 4.7 per cent lower in AUD, with like-for-like sales down 4.1 per cent. TFG reported a mixed brand performance throughout the period in a highly promotional market.
“The Australian business is making solid progress in managing costs and closing underperforming stores,” TFG added, but didn’t mention how many stores have been closed during the period.
The Foschini Group’s store rationalisation is not restricted to the Australian market alone. The group also manages much larger portfolios in Africa and Great Britain, with its Africa segment expected to see around 100 stores closed over the next two years, including around 80 in FY27.
“Globally, the consumer is expected to remain under pressure in the near term,” TFG reported. “Management will maintain a disciplined approach to credit extension and space optimisation, while continuing to focus on growing online penetration. The outlook remains cautious.”
Despite challenges in Australia – with the market contributing around 13.5 per cent of total revenue for the group – The Foschini Group reported a total sales lift of 0.2 per cent (or 2 per cent in constant currency) to R23 billion. This is equivalent to around $1.99 billion in AUD.
The African market saw sales growth of 3.4 per cent, with Great Britain up 2.3 per cent. TFG also reported challenging conditions for Africa and Great Britain.