Tue, 27 Jul 2021

  • In a business update for the year ended 27 June 2021, Truworths said its retail sales increased by 0.5% to 17 billion, from 16.9 billion in 2020.

  • Truworths' SA operations grew sales by 5.5% to 13 billion while account sales increased by 2.8% and its cash sales rose by 11.8%.

  • In the UK, where the group has an office segment, retail sales decreased by 12.9% to R4 billion, while online sales grew by 18.2%, making up 63% of the company's retail sales.

Retailer Truworths says the performance of its South African and UK stores was "materially affected" by Covid-19.

In a business update for the year ended 27 June 2021, the group said its retail sales increased by 0.5% to 17 billion, from 16.9 billion in 2020. Account sales were the biggest contributor, making up 52% of the transactions, up from 51%, while cash sales increased by 1.9%.

Truworths' SA operations grew its sales by 5.5% to 13 billion and its account sales increased by 2.8%, while its cash sales rose by 11.8%.

In the UK, where the group has an office segment, retail sales decreased by 12.9% to R4 billion, while online sales grew by 18.2%, making up 63% of the company's retail sales.

However, the retailer did not provide details on its earnings.

"The group is in the process of finalising various material entries and the results for the current period are in the year-end external audit review. The group will provide an update on earnings for the current period when it has reasonable certainty in this regard," said Truworths.

Back in the local market, Truworths is one of many businesses impacted by looting and unrest in parts of Gauteng and KwaZulu-Natal, where it also manufacturers clothing. The group said 57 of its 758 stores have been "directly and severely" impacted. More than half of the affected stores are in central business districts and small shopping malls. The remaining affected stores are in regional centres.

Truworths said about 160 more of its shops have been indirectly affected by precautionary closures as the unrest continued. The company said it implemented additional security measures to protect its businesses and staff and it is too early to determine the full extent of the damage.

The retailer's online stores are also experiencing disruption due to infrastructure damage and road transport risks in KwaZulu-Natal, as the group's logistics provider is also affected by the unrest.

Truworths is banking on insurance payouts to deal with the losses.

"The group believes that it has adequate insurance cover to mitigate much of the losses of merchandise, the damage to its stores and loss of profits as a consequence of the inability to trade," it said.

The retailer added that it was working to resume trading in the affected areas as soon as possible but the uncertainty around the extent of the damage makes it difficult to say when the resumption will be.

Truworths will release its annual results in September.

Source: News24

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