Advertise with fastmoving.co.za
 
 

Truworths Zim posts 40.8% half-year sales drop
Truworths Zim posts 40.8% half-year sales drop

Truworths Zim posts 40.8% half-year sales drop

RETAILER NEWS

By Malcom Sharara - Mar 10th, 16:33

Harare - With the Zimbabwean government now predicting a 3.7% GDP growth rate in 2017, the story is completely different at one of the country’s leading clothing retailers, Truworths. 

ZSE-listed Truworths, owned 34.39% by Truworths International, reported a 35.89% drop in revenue for the half-year ended January 8 2017.

In a statement accompanying the results, CEO Bekithemba Ndebele said group merchandise sales of $6.5m for the 26 weeks to January 8 2017 were 40.8% lower than those of the comparative prior year.

The group reported a loss of $986 888 for the period, against a profit of $327 876 prior year comparative.

The decline in sales was across all its chains with sales in Truworths coming off by 40.3%, Topics by 43% and Number 1 by 31.7%.

“The gross profit margin decreased to 38.1% (2016: 46.3%) as product was discounted to stimulate sales in a market witnessing general low aggregate demand,” said Ndebele.

Going forward, Ndebele said trading conditions are expected to remain extremely difficult and the business will have to reduce trading space in line with trading densities.

“The shortage of foreign currency will negatively impact product availability and pricing,” he said, adding that the decline in aggregate demand and gross margins will remain under pressure. 

Read more about: jse | zimbabwe | sales | retail | truworths

Related News

Consumer inflation slows again, after two months of increases
22/11/2017 - 11:56
Consumer inflation dipped as expected in October, thanks in part to smaller fuel price increases and a continued moderation of food inflation.

Sainsbury’s is playing the long game
21/11/2017 - 13:34
Sainsbury’s management appeared unphased after emerging as the underperforming grocer this quarter. Should investors be worried? In the short term, Sainsbury’s may struggle, but they have solid long term prospects.

Shoppers set to spend over £10bn in this year’s Black Friday bonanza
21/11/2017 - 11:47
Higher prices and increased retailer participation will drive Black Friday spend this year with total sales over the period set to rise 3.8%.

This year’s Black Friday promises to be ‘best ever’
21/11/2017 - 11:26
Economist Mike Schussler said he expects to see large numbers of consumers spending on Black Friday despite the dire economy.

Black Friday, Cyber Monday 2017 reflect growing digital evolution and appetite for seamless digital experiences
21/11/2017 - 11:16
With digital transformation initiatives permeating everything business does, the Black Friday and Cyber Monday period this year is expected to illustrate just how far online retailers have come in embracing Availability.