(2021: 793 stores)
15 new stores
OPENED ACROSS ALL BRANDS
(2021: 26 stores)
SUCCESSFUL LAUNCH OF THE
larger format store and
the Sync stand-alone stores
REDUCTION IN TOTAL
RETAIL TRADING SPACE
E-COMMERCE SALES NOW>
more than double
the largest Truworths store
TRUWORTHS HAS CONTINUED TO FOLLOW ITS PROVEN STRATEGY OF CAUTIOUSLY EXPANDING TRADING SPACE WHERE THERE IS OPPORTUNITY TO DO SO, INTRODUCING NEW FASHION BRANDS, INVESTING IN DIGITAL COMMERCE AND UTILISING SPACE MORE PRODUCTIVELY. STORES THAT ARE REFURBISHED ARE OFTEN RECONFIGURED TO MAXIMISE CUSTOMER APPEAL WITH THE ADDITION OF NEW BRANDS AND DESIGN CONCEPTS.
After being impacted by changes in customer shopping behaviour during the pandemic, store trading patterns have normalised as customers have returned to the super regional and regional malls where the stores were most impacted by the decline in foot traffic.
Stores maintained rigid COVID-19 health and safety compliance throughout the pandemic to ensure the safety of customers and employees. As restrictions have been gradually relaxed over the past year, in-store protocols have been adapted accordingly.
STORE PRESENCE IN SOUTH AFRICA
Fourteen new stores were opened during the year under review.
Five Sync stores were opened, adding to the 11 opened in the prior period during the launch phase of the brand.
Three new Truworths Emporium stores were opened as well as three Identity stores, with a further new store added for each of Truworths Man, Truworths Kids multi-brand, and the Earthchild/Naartjie combination stores.
The larger format Identity concept was successfully launched in the first half of the year, with five existing stores being expanded to the new design.
A total of 18 under-performing stores were closed, and of these seven stores were reopened in new locations within the same shopping malls. A further 23 stores were renovated and reprofiled, with a number of them being rightsized through either the expansion or reduction in trading space, while additional merchandise brands have been incorporated in other stores.
During the period, Truworths invested R222 million (2021: R201 million) in new store development and renovations.
Truworths achieved average rental reversions of approximately 20% in the reporting period, with significant reductions in a number of the country's largest malls, resulting in material cost savings.
However, trade is normalising and demand for quality space in good-performing malls remains high and savings of this magnitude are not likely to be ongoing.
RESPONSE TO ELECTRICITY LOAD SHEDDING
One of the major challenges in managing the store operations is electricity load shedding, which continues to have a significant disruption on trade in South Africa. Management continues to engage with landlords to install mall generators where possible. Unfortunately, landlords in several key centres have been slow to install generators, and currently only about half of the top 100 stores by sales are linked to alternative power supplies. Truworths has installed a generator in one of its major stores where the loss of sales impact is high, and will in the new financial year assess whether to install any further generators in relevant stores. Truworths is currently piloting the installation of inverters as a solution for some smaller stores.
EXPANDING E-COMMERCE BUSINESS
All Truworths products and brands are now available on the e-commerce multi-site. Together with the extensive Truworths store footprint, this creates an engaging omni-channel experience for customers to shop effortlessly in-store and on digital devices.
The Identity e-commerce website was launched in the first half of the 2022 financial period and has performed better than expected. Loads of Living online was launched as a component of the Truworths e-commerce multi-site and customers are now able to shop with a single basket across the Truworths, Office London and Loads of Living sites.
Truworths' e-commerce business generates more than double the annual sales of the largest Truworths store, and accounted for approximately 3% of merchandise sales in the period.
STORE FOOTPRINT IN THE REST OF AFRICA
The four stores in Kenya and Mauritius were closed during the reporting period and the Group no longer has a presence in these countries. A new Truworths store was opened in Botswana and an Identity store was closed in Namibia.
The store base in the rest of Africa has reduced to 31, with all the stores located in southern Africa, being Namibia (12), Botswana (10), Eswatini (5), Zambia (2) and Lesotho (2).
THE FASHION COURT
Truworths aims to trade from the centre of the fashion court in all leading malls and to be recognised as one of the main fashion anchor tenants. This positioning strategy also applies to stores on main streets and in towns where Truworths strives to be located at the heart of the fashion retail zone.
Enticing stores, a wide variety of exclusive brands and internationally styled merchandise position Truworths as an appealing and aspirational destination for quality fashion apparel. Creative merchandise displays in wide window frontages showcase the latest fashion trends, and are designed to invite customers into our stores.
MULTIPLE STORE FORMATS
TRUWORTHS EMPORIUM STORES
Truworths' 346 emporium stores house a portfolio of exclusive, market-leading brands. The store format encourages customers to cross-shop between the mainstream brands such as Truworths, Truworths Man, Uzzi, Daniel Hechter, LTD, Earthaddict, LTD Kids, Earthchild and Naartjie. These brands, together with their sub-brands, retain their unique identity and ensure variety and a multiple lifestyle offering within the emporium.
The brands available in each emporium depend on the size and location of the store. Following the expansion of the Truworths brand portfolio in recent years, four specialist emporiums are now offered within the greater emporium store: Truworths Ladieswear, Truworths Menswear, Truworths Ladieswear Designer and Truworths Kids.
Emporium stores are located in central positions in shopping malls and generally have three to five entrances, with maximum shop frontage and windows showcasing the wide range of brands and merchandise.
STAND-ALONE ONLY STORES
Four of the brands in the portfolio, namely Identity, Sync, Young Designers Emporium (YDE) and Office London, operate from stand-alone stores and are not incorporated in emporium stores as they generally target a different customer profile to Truworths' shoppers.
Identity appeals to the fashion-forward and value-conscious youth market, offering high fashion merchandise at affordable prices. Stores are vibrant, edgy and fun to appeal to younger customers.
Sync targets the value segment of the fashion market with an aspirational offering for young men and women, with good quality and competitive prices in a vibrant, energetic store environment.
YDE showcases the ranges of emerging South African designers and targets young, fashionable customers wanting designer labels and styling. The store design is a strong point of differentiation from competitors.
Office London is the South African offering of the Group's UK fashion footwear brand and operates stand-alone stores in central positions in shopping malls, often adjacent to the Truworths Emporium. The Office London stores are modern, light and energetic and are located in the top retail locations in South Africa.
RETAIL PRESENCE IN 2023
Trading space is expected to increase by approximately 2% in the 2023 financial period with continued new store openings and renovations, as well as consolidation of trading space to improve trading densities and the closure of under‑performing stores. Capital investment of R236 million has been committed to store development.
The new 'store of the future' design will be incorporated into the refurbished Truworths Emporium store in the V&A Waterfront (Cape Town), which is scheduled to open in the second half of the 2023 financial year and this will be followed by further selected Truworths Emporium store openings.
A new Truworths Kids multi-brand design concept and an enhanced Context store were included in the Truworths Emporium in the Greenacres Shopping Centre (Gqeberha) in September 2022. These new concepts will be rolled out to further Truworths Emporium stores during the remainder of the 2023 financial year.