South African fashion retailer TFG plans to expand local production capacity to reduce dependence on global supply chains, says Anthony Thunstrom, CEO.
The owner of British womenswear brands Hobbs and Whistles and the local Foschini and Markham clothing brand plans to add 10 new production units by expanding its own factories and buying new ones.
Each of these units will have between 200-400 workers and would be spread across the Cape Town and Durban regions.
TFG swung to an operating profit before finance costs of 4.8 billion rand ($310.91 million) in the year ended March 31 versus a loss of 719.2 million rand a year earlier, as it recovered from COVID-19 restrictions which forced store closures across its three markets.
The group’s revenues grew by 29.7 per cent to 46.2 billion rand, with retail turnover growth of 31.6 per cent at 43.4 billion rand. Online sales grew by 11.7 per cent and contributed 10.2 per cent to group retail turnover.
Formally known as The Foschini Group, TFG also resumed annual dividend payouts, declaring a final dividend of 330 cents per share.