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TFG: 198 looted and damaged stores remain closed

Group says it’s too soon to determine the impact of the unrest on its half-year results.
Growthpoint's Watercrest Mall in Hillcrest, where several TFG retail brands were hit by looting and riots. Image: Kierran Allen via Reuters

JSE-listed apparel, homeware and jewellery retail giant The Foschini Group (TFG) is uncertain when its 198 looted and damaged stores in KwaZulu-Natal and Gauteng will reopen.

In a trading update published on Monday, the group said it “continues to assess the damage caused to its stores and is quantifying losses to be recovered through its insurance policies”.

On July 16 it noted in a voluntary Sens update that 190 stores were affected by the unrest. However, in its latest statement, it said 198 were impacted by the looting and damage. The stores that were closed as a precautionary measure in the face of the riots have since reopened.

Read: The scale of the destruction

“It is not possible at this time to determine the impact [of the unrest] on the results for the half year [to the end of September] as there is no certainty as to when damaged stores will resume trading,” TFG added.

Thousands of stores hit

According to latest figures from the South African Council of Shopping Centres (Sacsc) around 3 880 retail stores were affected by the protest and looting in KwaZulu-Natal as well as parts of Gauteng and Mpumalanga, covering some 1.8 million square meters of gross lettable area (GLA).

Read:

Fixing Vukile-owned malls damaged by riots to cost less than expected

Watercrest Mall and City View are Growthpoint’s worst-hit properties in KZN

KwaZulu-Natal was the worst affected, accounting for some 67% of the affected retail space. Gauteng accounted for around 30% of the space affected, while Mpumalanga made up the balance, Sacsc research shows.

Trading update

Meanwhile, TFG said in its latest trading update that the group delivered a strong overall performance during the first quarter (April to June 2021) of its current (2022) financial year, with just over R10 billion in turnover.

It achieved group turnover growth of 15.8% compared to the same quarter in FY2020.

Most of this growth came through its acquisition of Jet from the now defunct Edcon.

Excluding Jet, turnover growth came in at just 1.9%.

The group pointed out that due to the substantial impacts of the various government-enforced lockdowns in the previous financial year, financial comparisons in its latest trading update were being provided against the first quarter of the 2020 financial year (April to June 2019).

“This provides more meaningful comparative analysis of the group’s trading performance,” it said.

TFG saw a robust performance in its TFG Africa and TFG Australia businesses, with turnover growth of 26.8% (ZAR) and 32.7% (AUD) respectively, compared to quarter one of its 2020 financial year.

Excluding Jet, TFG Africa’s turnover grew by 4.4% compared to the same quarter in FY2020.

Read: Pandemic pummels TFG to R719m FY operating loss

“While the majority of the group’s outlets traded strongly during the past quarter, consumer spend, particularly for TFG Africa, remained muted as uncertainties around further Covid-19 outbreaks, extended lockdowns and the slow pace of the vaccine roll-out adversely impacted consumer confidence,” TFG said.

“In South Africa, the recent civil unrest has and will continue to impact consumer spend and business confidence especially where businesses’ ability to trade has been hampered through the widespread destruction in the affected areas … for a few weeks in July 2021,” it added.

The group noted that trade in its TFG London unit since the reopening of most outlets on April 12 2021 “has outperformed expectation across all three brands, with the business generating positive cash flow in Q1 FY2022″.

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Only a nation of idiots destroys its own infrastructure and then rebuilds it and then destroys it again.

Selfsame idiots rock up at SASSA paypoints demand Grant money, Selfsame idiots knock on doors demand Jobs, selfsame idiots will vote for the originators of their misery

Self same idiot who gets a job with me is late on the first day, sulky, and when I find stuff missing he goes missing too.

Only a nation of idiots allows the majority to loot and plunder and then forces those who did not plunder to reward criminality by means of additional grants for those who stole.

Unfortunately your comment is correct.

1. For 27 years the PEOPLE voted for the ANC rubbishes.
2. The PEOPLE in thousands looted, stole and destroyed KZN
3. The PEOPLE cannot control themselves with booze.
4. The PEOPLE have the worst Maths marks on the planet

Sadly a country of rubbish PEOPLE

True, we really don’t have the best quality of people. Like that guy in Venda who was caught the other day with his goat or the trainee at the Police Training College who was caught in the toilets orchestrating a cash in transit heist on his cellphone. You can’t win a test match with F-Team players.

and the real rot starts at the “top”: the ANC regime “leadership” aka self enrichment cabal.

#thisisnotus
Sorry, but is is you and has been for the last 27 years. How do you like yourselves?

Now we know why the JSE is going nowhere and why people emigrate and investors ran away.

The destruction was way under-estimated.

On more loot on the 10th of August as they runoured to be planning and the other half of the stores will closed for good.

And some analysts want you to believe in the retail stocks.

This is so indicative of a people who were taught to fight for their rights by looting, destruction snd more, pre ‘94

The ANC forgot to tell them that our society has transformed into a civil one

Biting the hand that feeds sadly showcases the mentality

The same will happen when (God forbid they don’t) they introduce the NHI

More people will die in hospital due to a system that will eventually be bankrupt, like all the Parastatals are..

The 4 million or so tax payers subsidizing this ludicrous communist stlyle practice will be no more, having left the shores for a sane clean corrupt free country

When will Cyril and his merry band of Ministers ever realise that we are a third world country, of course fast tracked by the ANC who allowed this to happen

Leave them closed, let them travel to shop.

Time they policed their own, let the good find the rotten and weed them out.

Interesting fly on the wall situation will be popping up in lounges and kitchens in KZN and GTN.

New appliances from mixers to TVs, the exclamations of Wow when did you get that. Oh 3 weeks ago……mmmmm???

A few beers later a loose mouth boasts how easy it was.

The next week police knock on the door, Morning Sir/Mam have you a receipt for your TV, dishwasher etc.

Going to unfold slowly.

Only if the same police had the same vigour to stop the looting BEFORE it took place rather than knocking on doors AFTER the fact.

Exactly. Sit back and watch them loot then turn around and say the full might of the law will be used. South Africa does not make sense, nothing is governed by logic. As for policing, it seems you can put a uniform on anyone and call them ‘police’ these days. As for training? Nothing. They cannot even greet you. Shocking beyond belief but if you think it is going to get better, the joke is on you.

Is there no shame in stealing somebody else’s possessions? What kind of a mindset do these people have? I just don’t understand it.

I saw one written interview about a guy trying to sell stolen goods. The buyer said “no sorry i don’t buy stolen goods” and the seller said “no, no, I didn’t steal these, i just walked in and took them”. Apparently because it wasn’t a violent theft from someone’s home he didn’t see it as stealing.

Well, join Herman Mashaba’s class-action lawsuit against Cyril, the security cluster ministers and the ANC. Apparently 200 other businesses have joined, and I bet it’s small businesses.
This mess was created by the ANC and its factions, and it’s about time someone took them to court to account.
Knowing so-called big business though and how they suck-up to the ANC, I doubt TFG will.

Black Friday and Christmas time will be interested in those areas. They already looted things so why go buy gifts when you can give things away as gifts?

Wonder if the season is going to be a bust because of this especially in KZN

Average TFG store monthly turnover : R500k
Cost to Repair and restock store: R2 bar
Average monthly salaries: R100k
Take that and times it by 198
Then add that to the other 3000 stores looted
Estimate total cost to the economy..R50 billion

Cost to SA’s already tattered reputation…?

“According to latest figures from the South African Council of Shopping Centres (Sacsc) around 3 880 retail stores were affected by the protest and looting”.

A Franchise setup figure of R5,000,000.00 per shop multiplied that by 3,880 = R19,4Bil. We can now divide that by R620,000 cost creation per job = 31,290 jobs were lost just in terms of retail stores.

Why would investor especially the little guy rebuild his business considering the risk, rather put it into a government retail bond account. R5mil will get you R25,000 monthly interest payment risk free, you almost have to poor gambler thinking that you can do much better with all the risks considers. So unless you can make R50,000 a month guaranteed over 2 years then it is simply not worth the risk.

https://www.rsaretailbonds.gov.za/calculator.aspx

Imagine if looting was an olympic sport ! RSA would have all the medals :

All gold, no silver or bronze.

Well done, South Africa – Well done!!

What was really striking was the huge traffic jams at each of these looted facilities.
A large percentage of these thugs arrived by car!
So, not all of them were grant recipients so it seems!

End of comments.

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