Apparel retailers in South Africa have been struggling to boost sales as shoppers combat high personal debt levels in a sluggish economy. However, Michael Mark, Truworths Chief Executive said the ‘credit environment’ is improving in the country. ‘In-store credit’ is a significant growth-driver for South African apparel retailers and Truworths said that the facility was responsible for 60 per cent of its sales.
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Truworths reported that its half-year sales zoomed 36 per cent, taking retail sales to R8.5 billion in the period under review.
It has been observed that inclusion of recent acquisitions British Shoestore Office, and children’s clothing stores Earthchild and Naartjie, have improved the sales for the retailer.
Another clothing retailer, The Foschini Group said its sales for nine months to the end of December surged 33 per cent, primarily due to strong Holiday Season. Woolworths, a South African chain of retail stores and one of the largest in the country, too expects half-year Headline Earnings per Share (the main profit measure used in South Africa) to increase by 25 to 35 per cent year-on-year with sales also forecast to go up.
