The Foschini Group (TFG) has unveiled its annual results for the fiscal year ending March 31, 2024, revealing a remarkable surge in its online retail segment, powered by its e-commerce platform, Bash. TFG's online retail now accounts for 4.2% of the group’s retail turnover, reflecting the platform's pivotal role in driving digital growth.
TFG's online turnover experienced a significant 22% increase, reaching R5.6 billion and contributing 9.9% to the group's total retail turnover. The company attributed this impressive growth primarily to Bash's performance in the South African market.
“Bash continued its outstanding growth during the year and Thunström confirmed that breakeven for the e-commerce platform had been brought forward,” TFG stated in its report. The platform has become the leading South African fashion and lifestyle app, boasting a 45% increase in first-time shoppers. Notably, full-price sales surged by 63%, while multibrand sales saw an 83% increase, showcasing the platform’s ability to drive cross-brand shopping among customers.
The company’s overall financial health was robust, with revenue climbing 8.9% to a record R60.1 billion. Retail turnover saw a substantial rise of 44.4% over the past year. TFG reported a record gross profit of R16.1 billion, and earnings before interest and taxation (EBIT) grew by 24.9% to reach a record R4.2 billion. After-tax profit remained steady, with a slight increase of 0.18% from R3.026 billion to R3.031 billion.
Launched in July 2022 by e-commerce veterans Claude Hanan and Luke Jedeikin, Bash consolidates all of TFG's brands into a single online platform. Hanan and Jedeikin, who previously founded Superbalist and served as executives at Takealot, have leveraged their expertise to position Bash as a major player in the online retail space.
Bash is a part of TFG Labs, the group's technology hub aimed at establishing TFG as the continent's leading and most profitable e-commerce destination. The hub also focuses on transforming TFG into a high-tech omnichannel retailer, integrating online and offline shopping experiences seamlessly.
In November, TFG launched the first phase of a new 75,000-square-metre distribution centre in Riverfields, Midrand. This facility is set to revolutionize TFG's fulfilment processes, operating capacity, and omni-channel capabilities. “This facility will not only enhance our operational efficiency and scalability but also enable us to deliver a superior customer experience across all our channels,” TFG noted.
The new distribution centre marks the beginning of TFG’s plan to consolidate 13 smaller distribution centres, aiming to improve efficiency and responsiveness in its supply chain.
As Bash continues to drive growth and innovation within TFG, the company is well-positioned to capitalize on the expanding e-commerce market in Africa, setting new benchmarks for retail performance and customer satisfaction.
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