Last year was one to forget for retail companies listed on the JSE. Changes made to the National Credit Act of 2005 bit into their share of the lending pie, while the downturn in the local economy — along with that of the African economy as a whole — meant consumers were less willing to part with their hard-earned money. The only way to lure these reluctant spenders was to drop prices by scandalous proportions, a gamble that ended badly for more than one retailer. On the clothing side, Mr Price Group has grabbed the headlines, telling the market that promotional activity in the quarter ended December 31 really hurt its sales. Of all the clothing retailers, TFG, which owns 22 retail brands including Foschini, was the only one to release an upbeat trading statement, although its Africa operations were under pressure. In the nine months to December 24, TFG reported a 14.5% rise in group sales. Growth for TFG Africa was 9.7% with same-store sales growth of 3.7%. Merchandise inflation fo...
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