Prospects of higher GDP growth and lower inflation are expected to support consumer spending in the year ahead, retailer says
07 November 2024 - 10:43
by Jacqueline Mackenzie
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Retail group Truworths International has reported a 2.8% increase in sales for the first 18 weeks of its financial year, but notes that trading conditions in SA remain challenging.
Group retail sales for the period July 1 to November 3 of the 2025 financial year increased by 2.8% to R7.2bn compared with a year ago.
Truworths Africa’s sales were up 0.2% at R4.7bn, while Office UK’s sales jumped 9.7% to £106.9m, the retailer said in a statement on Thursday.
Account sales comprised 46% of group retail sales, with account and cash sales increasing by 0.4% and 4.9%, respectively, relative to the prior period.
While business and consumer sentiment in SA had improved since the formation of the government of national unity, the optimism had not yet translated into meaningful improvements in the disposable incomes of local consumers, the group said.
“The prospects of higher GDP growth, lower inflation, stabilising cost of living and lower interest rates are expected to support consumer spending in the year ahead,” it said.
However, the timing and extent of the impact remain uncertain at this stage.
Online sales showed good growth in the current period, increasing by 38% and contributing 6.4% to the segment’s total retail sales, it said.
General trading conditions in the UK remain suppressed as consumers maintain a cautious approach to spending.
Notwithstanding these conditions, Office UK has proved resilient, recording retail sales growth of 9.7% in sterling. In rand terms, retail sales increased by 8.1% to R2.5bn.
Online sales increased by 3.2% and comprised 42.9% of total retail sales.
Trading space in the Office UK segment is expected to increase by about 10% for the 2025 financial period.
The group said in its recent annual report that competition from Shein and Temu — the online value clothing retailers based in China that sell directly to consumers in SA — together with increasing competition from online and traditional retailers were the biggest risks facing the business.
The company also said it would focus on merchandise categories where Truworths was under-represented to grow market share.
The group will release its interim results on February 27.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Truworths bemoans SA’s challenging trading conditions
Prospects of higher GDP growth and lower inflation are expected to support consumer spending in the year ahead, retailer says
Retail group Truworths International has reported a 2.8% increase in sales for the first 18 weeks of its financial year, but notes that trading conditions in SA remain challenging.
Group retail sales for the period July 1 to November 3 of the 2025 financial year increased by 2.8% to R7.2bn compared with a year ago.
Truworths Africa’s sales were up 0.2% at R4.7bn, while Office UK’s sales jumped 9.7% to £106.9m, the retailer said in a statement on Thursday.
Account sales comprised 46% of group retail sales, with account and cash sales increasing by 0.4% and 4.9%, respectively, relative to the prior period.
While business and consumer sentiment in SA had improved since the formation of the government of national unity, the optimism had not yet translated into meaningful improvements in the disposable incomes of local consumers, the group said.
“The prospects of higher GDP growth, lower inflation, stabilising cost of living and lower interest rates are expected to support consumer spending in the year ahead,” it said.
However, the timing and extent of the impact remain uncertain at this stage.
Online sales showed good growth in the current period, increasing by 38% and contributing 6.4% to the segment’s total retail sales, it said.
General trading conditions in the UK remain suppressed as consumers maintain a cautious approach to spending.
Notwithstanding these conditions, Office UK has proved resilient, recording retail sales growth of 9.7% in sterling.
In rand terms, retail sales increased by 8.1% to R2.5bn.
Online sales increased by 3.2% and comprised 42.9% of total retail sales.
Trading space in the Office UK segment is expected to increase by about 10% for the 2025 financial period.
The group said in its recent annual report that competition from Shein and Temu — the online value clothing retailers based in China that sell directly to consumers in SA — together with increasing competition from online and traditional retailers were the biggest risks facing the business.
The company also said it would focus on merchandise categories where Truworths was under-represented to grow market share.
The group will release its interim results on February 27.
With Kabelo Khumalo
mackenziej@arena.africa
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