Foschini Group’s online platform, Bash, boosts sales

The Foschini Group (TFG) received a sales boost from its online platform, Bash. The latest data reveals how consumers have enjoyed shopping from the comfort of their fingertips, instead of physically going to the store.  

The retailer released its financial results for 21 weeks ended 24 August 2024 on Wednesday, giving mixed performance from their Africa, Australia and London operations.

TFG is the parent of brands such as @home, American Swiss, Foschini, Bash, Jet, Markham, Spotscene, and Sterns. Overall the group has 34 brands under its wings. In Africa, it traded out of 3,632 stores, a net increase of 11 stores since 1 April 2024.

Group’s sales mixed performance

The group’s lifesaver has been its online platform, Bash. Its sales grew by 7.8% and contributed 10.8% to total sales. When it comes to cash sales, which are from in-store purchases. contribute 73,0% to total TFG Africa sales and 81,2% to total group sales.

According to the results, gross margin increased by more than 100 basis points, this is despite 3.5% lower sales as gross margins improved across all territories. The group in Africa saw its gross margin increase by 200 basis points, this is against a decline in sales of 1,0%.

It attributes the decline to high clearance activity during the previous period and the late start to winter in South Africa.

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Gross margin is the difference between the money the company makes from selling something (revenue) and the cost of producing (cost of goods sold). It is a way to measure how profitable sales are.

Gross margin shows the profit made from sales, but it doesn’t take into account other expenses like overheads, salaries, and marketing.

Africa’s sales performance

The group acknowledged that the current financial year has been surrounded by difficult trading conditions throughout the market with inflation and living costs putting pressure on consumers.

“Whilst the late onset of winter in South Africa added pressure at the beginning of the current period, improved consumer sentiment provided some relief after the outcome of the South African elections.”

Coming to cash sales in the continent, they declined by 1.5%, however, cash sales still managed to contribute a significant 73.0% to total sales. Coming to credit sales, there was an increase of 0.5%.

“Average acceptance rates for new accounts increased to 20,1% compared to 17,5% for the second half of the prior financial year.” Sales by Bash grew by 42.7%, which now contributes 5.6% to total sales.

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Group’s performance in London and Australia

In London, the group said sales were impacted by inventory delays due to shipping disruptions in the Red Sea, high inflation and elevated interest rates. In addition, weak consumer demand drove an increased promotional environment.

“The focus of TFG London’s management has been on growing the direct-to-consumer channel and the protection of gross margin, which improved by 150 basis points.”

The group in London recorded a 12.4% sales decline, they said this is a result of weak concession partner performance. Own-store sales declined by 5.7%, while online sales contributed 41.7% to total sales.

In Australia, the group suffered the impact of high inflation and elevated interest rates. “Consumers continued to remain under pressure, impact demand.”

The was a 3.9% contraction in sales, and management’s focus on inventory management ensured an improvement in gross margin by 50 basis points compared to the prior period.

Bash is still a lifesaver in this area, with online sales increasing by 10,5% and contributing 8,8% to total sales.

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