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TFG buys delivery app Quench to bolster omni-channel

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TFG, through its tech division TFGLabs, has acquired digital shopping platform and last-mile delivery provider Quench.

Quench provides same-day delivery of groceries, food, medication and alcohol via its mobile app to customers in major centres across SA.

According to the fashion retail giant, the acquisition forms part of TFGLabs’ ambition to become SA’s next e-commerce powerhouse.

TFG, formerly known as The Foschini Group, has been investing heavily in expertise and technical capabilities over the last year. It has earmarked R500 million over the next three to five years to expand its digital capability.

In June, the retailer launched its TFGLabs technology division, in a move to attract the continent’s best tech talent and use the latest technologies to create a seamless mobile shopping experience.

The Quench acquisition will enhance the company’s existing delivery capabilities across the fulfilment network through proprietary software and engineering, bringing a scientific approach to planning, least-cost routing and asset utilisation, notes the retailer.

“With this acquisition we gain access to fast, reliable delivery across South Africa, whilst achieving superior delivery unit economics,” says Claude Hanan, co-head of TFGLabs.

“With 75% of orders currently fulfilled from stores, Quench’s network of micro-carriers will become an essential enabler for our ‘ship-from-store’ strategy. All international market data shows that delivery price, reliability and speed is highly correlated to e-commerce penetration and purchase frequency.”

TFG has over 4 300 outlets in 26 countries on the continent, and employs more than 34 800 people, with over 26 million customers in SA.

The retailer’s online shopping app, myTFGworld.com, consolidates its retail partners, which include Totalsports, @home, @homelivingspace, Markham and Exact.

“For now it’s business-as-usual at Quench,” says Hanan. “We will continue to service Quench’s existing partners and customers, and in fact immediately invest in improving our offering and service to both.”

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