Newsletter No 42/1 November 2024

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Politix, the Australian menswear brand launches in SA

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For over 40 years, Politix has helped Australian men make their mark, and now they’re setting their sights on the African continent.

Part of the Country Road Group’s house of brands, Politix launching in Africa is a significant milestone in the brand’s journey.

“We are thrilled to bring Politix to South Africa, where we’re known for our vibrant culture and growing fashion scene,” said Kay Raidoo, country manager at Country Road Group.

“Our Politix collection is designed to resonate with the modern man who appreciates effortless style and unmatched comfort. Our ambition is that soon we’ll be the #1 destination for ready-to-wear menswear in the country.”

With a commitment to redefining excellence in menswear, Politix offers a range of clothing designed to harness the confidence of the wearer, and help him realise his full potential. From sharp, tailored suits perfect for the boardroom, to effortlessly stylish casual wear, the brand is poised to meet the evolving fashion needs of the South African man.

Politix understands that every occasion – no matter the dress code – is another opportunity to explore and express his unique style.

TFG Acquires prominent UK-based fashion retailer, White Stuff

TFG announced its acquisition of leading UK-based fashion and lifestyle retailer, White Stuff.  

The acquisition was made through the London subsidiary of the South African headquartered TFG Limited Group which has a portfolio of 35 leading retail brands in 23 countries. The White Stuff brand joins a leading suite of UK-based fashion brands already owned by TFG, such as Hobbs, Whistles and Phase Eight.

Founded in 1985, White Stuff specialises in unique, thoughtfully designed clothing and accessories for women, men and children. White Stuff has 113 stores and 46 concessions in the UK – within John Lewis, Marks & Spencer and other quality independent retailers. The business also operates 6 stores and 25 concessions across Europe. White Stuff also retails online internationally and has 606 wholesale stockists – 178 in the UK and Ireland and 428 internationally. Online sales currently contribute 43% of total sales.

TFG CEO, Anthony Thunström said the acquisition marks a significant milestone in TFG London’s medium-term strategy to achieve critical mass and to add new brands into the Group, having first acquired Phase Eight in 2015, and later, acquisitions of Whistles and Hobbs. TFG London will now be in a position to create a unified retail platform in the United Kingdom, which largely mirrors our platform structure in Africa and Australia.

“This acquisition represents a meaningful build out of our London business, adding close to 50% to TFG London’s turnover. White Stuff is a prominent high brand-equity business in the UK, and has potential for strong, sustained growth. We are excited about its prospects and very pleased to be retaining the experienced senior management team led by CEO Jo Jenkins,” said Thunström.

CEO of TFG London, Justin Hampshire, said of the acquisition: “We are thrilled to welcome the White Stuff team into the TFG London family. We have long admired the White Stuff brand which is synonymous with unique detail and exceptional quality. The addition of White Stuff to TFG London diversifies and strengthens our existing womenswear portfolio, adding the first lifestyle brand while also bringing a well-established menswear offer and its loyal and resilient customer base.” 

CEO of White Stuff, Jo Jenkins said TFG London is the ideal owner for the business because of the value of White Stuff’s brand and the wealth of premium retail experience in the business. “This is a very exciting moment for White Stuff and represents the natural next step for our business. It builds on the hard work and success the brand has achieved in recent years”.  

White Stuff has a solid track record of financial performance and in the financial year to 30 April 2024, the business achieved revenue of £154.8m and EBITDA of £8.6m. Over 85% of revenue was generated from the store estate and online, with the remainder from its international and wholesale operations.

Pick n Pay Delivers Early Momentum on Its Turnaround Plan

Pick n Pay’s turnaround strategy is gaining momentum, showing strong progress across key initiatives, including solid performance from Boxer and improved results in Pick n Pay supermarkets.

The Group’s interim results, published today, highlight significant sales growth in Pick n Pay Clothing and Pick n Pay Online.

As anticipated, the first six months of FY25 (26 weeks ended 25 August 2024) remained challenging. However, due to improved store operations – showing a distinct turnaround – Pick n Pay CEO Sean Summers says they are quietly confident that they will reduce trading losses in the Pick n Pay segment by as much as 50% for the full-year.

Group turnover grew 3.7% to R56.1 billion, with like-for-like sales growth of 2.9%, with performance varying across divisions. Boxer recorded strong sales growth of 12.0%, well balanced between like-for-like sales (+7.7%) and sales from new stores (+4.3%). Boxer recorded another impressive earnings performance, with trading profit up 16% year-on-year. “The Boxer IPO remains pivotal to our strategy, and their remarkable performance continues to prove it is an exceptional business. We are excited to see it thrive as a listed entity,” said Summers. “It will be one of the most exciting listings on the JSE in years.”

Company-owned Pick n Pay supermarkets saw an encouraging performance for the first half of FY25, with like-for-like sales growth increasing to 3.1%, moving out of the negative territory recorded in the second half of FY24, which was -0.5%.

This improvement reflects early signs of recovery, driven by more competitive pricing and enhanced product ranges for customers, including reinstating over 3,000 products and extending Pick n Pay’s private label offer. Customers benefited from lower prices through the Group’s investing reduced loadshedding costs into lower prices for essential items, and keeping internal inflation at 3.4%, below market averages.

The Group also prioritised customer service by training 35,000 staff members through a new ‘hearts and minds’ programme, and this process is ongoing to improve service levels more in line with customer expectations.

Pick n Pay Clothing continued to accelerate and gain market share, with 9.8% sales growth and an additional ten new stores in the half. Online sales also saw impressive growth (+60.6%), driven by ongoing enhancements to the Pick n Pay asap! app, faster picking and delivery times and an expanded footprint to 550 locations.

The Pick n Pay store reset process, a key priority in the plan, is well underway. This will address loss-making Pick n Pay stores, which disproportionately affected the Group’s performance in the first half. Fourteen underperforming stores were closed during the period, and we completed our first successful conversion to Boxer. “We are steadily progressing to a better performing and more profitable store estate by closing loss-making stores, converting stores to franchise, or to Boxer. Our estate is starting to make a great deal more sense.”

“Through greater store discipline and execution, some of the stores initially identified for closure have since become profitable. And that isn’t the only change to our estate; we will also open several new Supermarkets before the end of the calendar year,” says Summers.

While much work still needs to be done to return the Group to profitability within the three-year timeframe provided for in the turnaround, Summers said that early indications are positive and that the Group was on the right trajectory.

The Group has delivered on key milestones across its turnaround plan in a short period. This includes the successful conclusion of the 106% over-subscribed Rights Offer as part of the Group’s two-step Recapitalisation Plan, which raised R4.0 billion in new capital. In addition, the Boxer IPO will further strengthen the Group’s balance sheet, and remains on track for completion at the end of 2024.

Looking ahead, Summers said the Group was confident in stronger second-half earnings, driven by reduced net funding costs from the Recapitalisation Plan, continued growth in Boxer and Clothing, further early recovery in Pick n Pay, and the imminent Boxer IPO, in which Pick n Pay will retain a controlling stake.

Summers concludes:

“The team is completely committed to our plan and priorities to ensure these positive changes fully reflect in our earnings.

“Our focus this year has been strengthening our balance sheet and implementing the turnaround plan. Once our capital is in place, we can also start investing in refurbishing Pick n Pay stores and opening new ones.

“Exactly a year ago, when I re-joined Picked Pick n Pay, I forecast that this would be a multi-year journey and that it would get worse before getting better. Our earnings for the first half reflect this, and I am confident that the worst is behind us now.

“I’d like to pay tribute to the entire Pick n Pay team, who has done a magnificent job with huge energy and focus against all odds.

“On Wednesday, we will also announce a strategic partnership that will be a game changer for our business and customers alike, showing further confidence and traction in our journey to restoring Pick n Pay to its rightful place.”    African Retail

Pepkor – change to investment committee

Paula Disberry and Louis du Preez have been appointed to the investment committee. Steve Müller will step down as a member of the investment committee. Müller will continue to serve as chair of the human resources and remuneration committee and as a member of the audit and risk committee.

The changes are effective 1 November 2024. The changes were made with the objective of rebalancing the skill sets and responsibilities across Board committees

Those who like collecting ties are known as grabatologists.

During the Renaissance period, it was fashionable to shave off the eyebrows.

Valentino Red was given this name after he became well-known for the bright red dresses he designed

Company Profile:-

House of Lafoi

Brand Name: House of Lafoi

About Us:
House of Lafoi, meaning “House of Faith,” is a distinguished fashion brand dedicated to celebrating the elegance and individuality of every woman. Established with a youthful spirit and a commitment to innovation, we specialize in high-quality, exclusive ladies’ wear that ranges from sophisticated designer dresses to chic everyday outfits. Our mission is to empower women through fashion that enhances their confidence and style.

Our Offerings:
At House of Lafoi, we cater to women of all shapes and sizes, specifically those ranging from sizes 30 to 42. Our diverse collection includes exquisite evening gowns, elegant dining wear, and versatile everyday dresses, all crafted with an emphasis on both style and comfort. Each piece is thoughtfully designed to ensure a perfect fit, allowing every woman to express her unique sense of fashion.

Our Commitment:
We are dedicated to delivering high-class fashion that not only looks good but feels good too. Each garment is made with meticulous attention to detail, reflecting our commitment to quality and exclusivity. At House of Lafoi, we believe that every woman deserves to feel beautiful and empowered in what she wears.

Vision:
As a locally established, youth-owned brand, our vision is to blend innovation with tradition, creating fashion that celebrates individuality while fostering confidence and sophistication. We are passionate about giving back to our community by creating job opportunities and contributing to local development, addressing the urgent need for employment in our area. With the growth of our brand, we aim to support and uplift those around us.

Future Goals:
As a startup brand, we are actively seeking funding and partnerships to expand our reach and establish physical outlets for our collections. We believe that accessibility is key to empowering women through fashion. By securing financial backing, we can increase production capacity, enhance our marketing efforts, and open new retail locations that will allow more women to experience the elegance of House of Lafoi.

Additionally, we aim to develop collaborative initiatives with local artisans and fashion outlets, promoting craftsmanship and sustainability in fashion. Our goal is to create a community where women feel supported, celebrated, and confident in their choices.

In summary, House of Lafoi is more than just a fashion brand; it is a movement toward empowerment, individuality, and community development. Join us on this journey as we strive to redefine women’s fashion and create a lasting impact on our community.

Email : houseoflafoi@outlook.com

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