BUSINESS MAVERICK: Adapt or Die: Truworths and Woolies must bow to the consumer

Trading conditions in the retail space have seldom been more difficult, with Brexit in the UK, load shedding and economic malaise in SA, bushfires in Australia and the coronavirus from China all wreaking havoc on retail sales.

The performance from Fashion, Beauty and Home fell by a disappointing 8.9% to R834-million. In Australia, David Jones’ results were nothing short of calamitous, falling 58.2% to R197-million while Country Road fell 9.7%. That said, there is reason to be optimistic. The core Woolworths business is solid. Work has been done to reposition FBH, although “we can sharpen the pencil on pricing,” Moir admits.

Truworths CEO Michael Mark echoes this sentiment. In a conversation with Lindsay Williams for the podcast series“It is tough in South Africa, but in the UK it is even more so.”Truworths, once a retail darling, also saw its share fall precipitously after it wrote down the value of footwear firm Office byGroup sales were up 1.3% to R10.6-billion. Operating profit decreased 2.3% to R2.3-billion, largely due to losses in the UK.Unlike Woolies, where net debt is R11.

Both firms have stressed the importance of online shopping, particularly in their international operations. In SA, the online channel is growing fast but off a smaller base. Woolies’ fashion, beauty and home business saw online sales increase by 29% in the period, while food sales grew by 22%.

Indonesia Berita Terbaru, Indonesia Berita utama

Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.

BUSINESS MAVERICK: The long and curious battle over the Amplats pension fundThe jury is still out about umbrella funds being better for members, so why is Amplats seemingly unilaterally deciding to move the Amplats Group Provident Fund to an umbrella fund without any consultation with either the Board of Trustees or the employees?
Sumber: dailymaverick - 🏆 3. / 84 Baca lebih lajut »

BUSINESS MAVERICK: Anglo unveils flat results as Amplats gets first female CEO to drive technical changeGlobal mining conglomerate Anglo American has reported flat annual results that would have been worse without the stellar performances of its SA-based platinum and iron ore divisions. The Anglo report comes as Anglo American Platinum’s new CEO, Natascha Viljoen, has been named, just days after the announcement of Chris Griffiths’ departure.
Sumber: dailymaverick - 🏆 3. / 84 Baca lebih lajut »