FOSCHINI

Clothing sales in the Foschini chain grew by 10,5% year on year, with comparable store turnover up 8,5%. While trading in the first half was more difficult increasing by 3,0%, the second half was substantially better with turnover growth of 18,2%.

An important factor in breaking through to acceptable levels of growth was a correction in the ratio of "casual to smart" stock largely as a result of carrying an excessive quantity of "smart" stock at the end of the previous year. The ratio was corrected in the first quarter.

The "casual to smart" ratio was in good balance after the winter of 2010 and the summer stock assortment was welcomed by the market, which was also pleased by the improved value on offer. These factors had a positive effect on the season’s turnover and ushered in a generally better performance in the second half of the year.

The total turnover of the Foschini chain in the full year, including its cosmetics and cellular departments, grew by 10,7%.

Seven new Foschini stores were opened during the year, the most significant of these being I’langa Mall in Mbombela, Manda Hill in Zambia and Cavendish Square in Cape Town. The performance of the Manda Hill store has been very encouraging and additional stores will be opened in Zambia in the coming year.

The performance of the Manda Hill store has been very encouraging and additional stores will be opened in Zambia in the coming year.

The opening of a Foschini store in the Cavendish Centre in Cape Town was a milestone for the Foschini brand and a new store design was created for the event. The reaction it received from both customers and staff was so positive that this store has formed the basis of a new concept which is being rolled out to new stores. As is the case with all new stores, variations and enhancements are made continuously.

An enlarged Foschini store will open in Sandton City, Gauteng, in November 2011 with a store concept that is showing exceptional promise.