JOHANNESBURG (Reuters) – South African upmarket fashion retailer TFG reported an 8.4% rise third-quarter sales on Friday, driven by increased spending by shoppers over the key Black Friday and Christmas trading period.
Consumers across TFG’s three regions in Africa, London and Australia had been grappling with high living costs which sapped discretionary spending in its first half ended Sept. 30.
This had prompted fears about the Christmas quarter trading, traditionally the most lucrative of the year.
TFG, owner of the Foschini and Markham clothing stores, said the sales growth in the 13 weeks ended Dec. 30 was significantly ahead of the 2% sales contraction in the first half.
Group sales in the nine months from April 1 to Dec. 28 inched up by 1.6%, with gross profit up 5.7% on the prior nine-month period, it added.
Consumers in Africa shopped everything from clothes, homeware to beauty and jewellery products during the quarter, when sales are typically boosted by Black Friday deals.
In South Africa particularly, analysts have said that retailers are also benefiting from a pension reform that allowed fund members to make partial withdrawals before retirement, which meant that consumers had more money to spend.
Sales of TFG Africa, which contribute 72% to group turnover, grew by 5.3%, while TFG London sales jumped 45.5% in the quarter, thanks to the acquisition of fashion and lifestyle retailer White Stuff. Its Australian unit, however, reported a sales contraction of 3% as the country continues to face tough trading conditions.
(Reporting by Nqobile Dludla; Editing by Emelia Sithole-Matarise)
