South African retail giant TFG is making waves with its e-commerce platform, Bash, which is currently firing on all cylinders.
As the digital marketplace continues to evolve, TFG’s robust online presence through Bash is setting new standards in the retail industry for the the retailer.
With seamless user experience, a wide range of products, and innovative features, Bash is driving significant growth and customer satisfaction for TFG, positioning the company at the forefront of the e-commerce sector in South Africa.
Bash was launched in February 2023 by TFG. For more read: TFG’s New Bash App Tops Download Charts After Official Launch
TFG announced today that its online retail turnover up +22,0% to R5,6 billion for the year that ended March 31, contributing 9,9% to total retail turnover, a growth largely attributable to strong online retail turnover growth in South Africa via Bash platform.
The retailer added that retail turnover grew by 8,6%, supported by the expansion of its footprint and brand portfolio, and further growth in online retail turnover in South Africa via Bash platform.
It added that store retail turnover continued to see strong growth up 9,3%.
“Following our continued investment in our e-commerce platform, Bash, online retail turnover grew 44,4% and now contributes 4,2% to retail turnover.”
The company, which owns Foschini and Markhams clothing stores, posted a 0.2% increase in full-year headline earnings per share and declared a higher dividend, sending its shares up more than 6% in early trade.
The group generated cash from operations of R12,5 billion for the year versus R7,1 billion in 2023, delivered through a robust trading performance and continued effective management of working capital.
TFG Africa
The company said retail turnover growth of 10,4% was driven largely by Clothing, with a particularly strong performance in Sport and Womenswear as well as in Homeware.
“Trading densities in TFG Africa also grew by 10,0%. Port delays impacted imports, but our local manufacturing capability mitigated the worst impac,” TFG said.
“Load shedding continues to impact trade with c.393 000 lost trading hours during FY2024.”
The company, which also operates in the United Kingdom with Hobbs and Whistles stores, said store retail turnover declined 6,6%, whilst online retail turnover declined 0,8%, now contributing 42,7% to TFG London’s retail turnover.
TFG London maintained gross profit margins through careful inventory management and an increase in own-channel mix, growing gross profit by 1,4% compared to the prior period. TFG London continued to manage the cost base which helped limit the decline in operating profit before finance costs to 5,3%. TFG London delivered the second highest operating profit before finance costs in its history.
The group, which also operates in Australia with menswear clothing brands Connor and Johnny Bigg, said higher inflation and interest rates meant that consumers in Australia remained under pressure, impacting consumer confidence and demand.
TFG Australia’s performance is also set against a strong post-COVID-19 recovery base. Consequently, retail turnover was 5,6% (AUD) lower. Store retail turnover declined 6,5%, whilst online retail turnover grew 7,5%, now contributing 7,3% to TFG Australia’s retail turnover. Gross profit margin remained strong, but the impact of inflation on the cost base contributed to the decline in operating profit before finance costs of 28,9%.
TFG Australia still delivered the second highest operating profit before finance costs in its history.
During the year, TFG acquired Street Fever, an independent retailer of affordable branded footwear and apparel, with effect from 26 April 2023.
“The integration of the 91 Street Fever stores into Sneaker Factory has allowed us to quickly scale this business to 213 stores,” said TFG.
