Foschini: None the worse for wear
While retailers struggle in the tough UK and Australian markets, TFG is styling, thanks to some smart acquisitions
In an ambitious offshore diversification drive, The Foschini Group (TFG) has pumped R6bn into acquisitions over the past three years. This has taken the group into two of the world’s toughest retail markets: the UK and Australia. TFG has encountered its biggest challenge in the UK, where consumer confidence — hit by the June 2016 Brexit vote — is the weakest of any major economy in the region. Reflecting the severity of conditions, the British Retail Consortium reported a 4.1% like-for-like fall in in-store nonfood sales in May. "The UK is an incredibly difficult market to trade in," says Doug Murray, who steps down as TFG CEO in September after almost 11 years in the job. He will be succeeded by company CFO Anthony Thunström. TFG entered the UK in January 2015 through the £140m purchase of women’s fashion retailer Phase Eight. A smaller bolt-on acquisition, Whistles, was added a year later. Phase Eight — the core of TFG London — operates 157 stores and 416 concessions in the UK and...
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