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Load-shedding drives TFG clients to digital platforms

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 24 Jan 2023

Online retail turnover for The Foschini Group (TFG) Africa division grew by 43.3% in the third quarter (Q3) of fiscal year 2023, as electricity supply disruptions pushed customers to the company’s e-commerce platforms.

The JSE-listed retailer yesterday reported its performance for Q3 and the nine months ended December, saying it achieved record Black Friday and Cyber Monday sales, with turnover exceeding R1 billion over the two days.

TFG, which also has presence in the UK and Australia, reported double-digit online retail income for its Africa operations.

“Online retail turnover for Q3 FY2023 grew by 43.3% compared to the same quarter in FY2022, as retailers and shopping centres continue to grapple with the constant electricity supply disruptions, and customers turned to our e-commerce platforms.

“Online retail turnover contributed 3.9% of total TFG Africa retail turnover for Q3 FY2023 (Q3 FY2022: 3.2%). For the nine months ended 31 December 2022, online retail turnover grew 30.1% and contributed 3.4% to total TFG Africa retail turnover, compared to the same period last year (FY2022: 3.1%).”

In the period, the company says online retail turnover from TFG London websites contracted 11.5% in Q3 FY2023, compared to the same quarter in FY2022.

The contribution of online retail turnover for the quarter was at 42% (Q3 FY2022: 44.9%).

In Australia, the retailer says, online retail turnover for Q3 FY2023 was down 16.2%, compared to the same quarter in FY2022, contributing 5.8% to total TFG Australia retail turnover for the quarter (Q3 FY2022: 8.4%) as previously locked-down shoppers returned to stores.

TFG says its investment in battery backup power solutions proved sound and partly mitigated the impact of load-shedding in its South African businesses.

“As at 31 December 2022, 1 455 stores had backup power, representing 70% of TFG Africa's turnover, with plans to ensure all our stores have backup power over the next few months. Additional diesel and security costs were incurred to protect operations and stores impacted by deeper levels of load-shedding.”

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