The Foschini Group (TFG) said yesterday its group gross margin increased by more than 100 basis points for the 21 weeks ended August 24 when compared with the same period in 2023, despite 3.5% lower sales as margins improved across all territories.
Gross margin for TFG Africa increased by 200 basis points against a decline in sales of 1% (like-for-like decline of 2.6%), mainly due to high clearance activity during the prior period and the late start to winter in South Africa, a trading statement said.
The result of the higher margin, despite the normalised sales activity, meant TFG Africa achieved a gross profit record of R5.9 billion, up 4% on the prior period.
Group online sales grew 7.8% and contributed 10.8% to total sales; the growth largely attributable to growth of 42.7% in South Africa via the Bash platform.
Cash sales contribute 73% to total TFG Africa sales and 81.2% to total group sales.
TFG London's gross margin increased by 150 basis points, with sales in UK pounds 12.4% lower, as headwinds from low consumer confidence impacted non-food retail, particularly in the premium categories where the group brands operate.
TFG Australia's sales were 3.9% lower in Australian dollars as macro conditions continued to dampen consumer demand.
“Whilst trade remains inconsistent, indicating a consumer still under pressure, the outlook for the remainder of the 2025 financial year is likely to improve in line with both the outlook for the coming interest rate cutting cycle and the benefits in South Africa of a potentially stronger rand from the post-election political environment,” the group said.
BUSINESS REPORT