Truworths International aims to be a world-class omni-channel retailer of aspirational fashion clothing, footwear, accessories and homeware, operating in both the southern and northern hemispheres.
Enhance returns to shareholders through efficient financial and capital management, prudently managing gearing and focusing on tight expense control, applying cash generated from operations to fund capital investment, paying half-yearly dividends according to a consistent dividend policy and conducting share buy-backs at earnings accretive levels
Grow organically through the steady expansion of existing operations, while also seeking opportunities for strategic bolt-on acquisitions in fashion-related businesses to extend the customer offering
Create and maintain an enticing and modern store environment by regularly reviewing store design principles, developing new store concepts and upgrading stores as part of an ongoing renovation programme, while growing the omni-channel presence
Deploy a centralised management model characterised by clear board direction and strategy determination, active executive director involvement in business operations, a flat management structure, an empowered and accountable management team, and robust governance structures and processes
Diversify the business between the southern and northern hemispheres, countries of operation, cash and account sales, clothing and footwear, and owned and third-party merchandise brands
Conduct operations in a sustainable manner to ensure the viability of the Group’s businesses, principally by remaining relevant to and meeting the needs of customers, respecting the interests of all other stakeholders and managing the impact of the operations on the physical and natural environment
The Group’s strategic objectives are aimed at delivering sustained growth in revenue and profitability, enhancing long-term shareholder wealth and creating value for other stakeholders.
These strategic objectives for the Group, Truworths and Office will be realised through the delivery of short and medium-term action plans and projects, which are developed and implemented each year, as outlined in Material Issues, Risks and Opportunities.
The directors confirm that the Group’s strategy has been consistently applied during the reporting period, remains appropriate and is unchanged for the year ahead.
Engage in the retailing of fashion clothing, footwear, cosmetics, homeware and accessories under the principal Truworths and Identity brands, mainly in South Africa with a selective presence in southern Africa
Manage the risk of fashion through a merchandise strategy that offers an extensive range of internationally inspired aspirational fashion of high-quality fabric and construction, across a diversified and mostly internally developed and owned brand portfolio, and consistently introducing new fashion concepts
Focus on one customer profile: youthful and fashionable South African ladies, men and kids, and provide product offerings that vary from higher-priced aspirational brands to affordable ranges catering for the value-conscious market
Operate through leased store premises in prime locations in shopping malls and town centres, applying the emporium (store-within-a-store) concept where relevant and expanding the store footprint through prudent annual growth in trading space to gain market share and promote sales
Grow the omni-channel presence and market penetration through ongoing development of e-commerce capabilities, the creative use of social media platforms and other innovative brand development opportunities
Use the Group’s in-house account offering as an enabler of merchandise sales and a facilitator of merchandise sales growth, while enhancing customer relationship management to attract and retain customers
Supplement account facilities with a lay-by (set-aside) offering to develop relationships with new customers, expand customer participation in the loyalty programmes and grow merchandise sales
Manage account risk by steadily growing the Group’s active account base using strict credit-granting criteria, and deploying best-in-class new account acquisition processes and account risk management systems, together with creative collection strategies
Use a diversified range of merchandise manufacturing suppliers operating both domestically and outside Africa, accessed either directly through internal buying and sourcing teams, or through local or foreign agents
Maximise efficiencies in the supply chain by reducing lead times of both local and imported supplies through process enhancements and close collaboration with investment in and support of local manufacturers, and be first to market with the latest fashion merchandise
Utilise centralised Group-owned distribution centres and a mostly centralised distribution model, which uses outsourced transportation service providers to convey merchandise to the Group’s warehouses and between the warehouses and stores
Embrace transformation across the elements of the broad-based black economic empowerment scorecard applicable to the South African business to improve opportunities for previously disadvantaged South Africans, especially through employment equity, skills development, enterprise development and socio-economic development
Consolidate, restructure and restore the profitability of Office as a fashion-forward footwear and sneaker specialist, operating under the Office and Offspring brands
Expand the e-commerce business, recognising the importance of the omni-channel customer and the need to satisfy the customer’s store and digital experience
Manage inventory levels to minimise stock build-up, free up working capital and promote full-margin sales
Continue the store portfolio rationalisation process to meaningfully reduce real estate rental, business rates and operating costs
Devise and implement a strategy to grow sales of own-brand made-to-order (MTO) footwear, thereby materially increasing contribution to business revenue and improving gross margin
Utilise custom-designed leased distribution centres located at key shipping and transportation hubs and a distribution model which makes use of outsourced transportation service providers to convey merchandise to the Group’s warehouses and from these warehouses to customers and stores
Maintain and enhance relationships with suppliers of internationally branded footwear to remain positioned as their strategically important partner with scale access to consumer markets
Strategies are underpinned by sound financial, information and operating systems, as well as people and governance processes, while the Group’s Philosophy, Values and policies guide all business practices and interactions with stakeholders.