The Foschini Group (TFG) CMD 2025 summary

Strategic direction and growth initiatives

• Emphasizes resilience, diversification, and innovation, leveraging international businesses and launching five new BOLTS strategy extensions.

• Focus on building a scalable, platform-led retail group in Africa, with significant expansion in stores, brands, and customers since FY21.

• Strategic investments in value, homeware, and beauty, with new store openings, revamps, and targeted acquisitions to drive growth.

• International expansion in the UK and Australia, with disciplined M&A, platform leverage, and local leadership to diversify earnings.

• Five-year plan includes 1,037 new stores, major acquisitions, and the launch of high-margin private label beauty formats.

Financial guidance and performance outlook

• Group targets a 10% CAGR in sales to reach R80bn by 2028, with EBIT margin rising from 11% to 14% and ROCE from 14% to 18%.

• Africa retail turnover expected to grow from R40.2bn in FY25 to R57.9bn in FY28, with EBIT rising from R7.2bn to R11.2bn.

• Margin optimization through local manufacturing, inventory excellence, and demand-led supply chain, aiming for a 100bp margin improvement.

• Expense control via store optimization, digital investment, and AI-driven efficiencies, targeting expense-to-sales ratio reduction.

• Financial services to improve ROE above 20% by 2028, leveraging value-added services and enhanced credit origination.

Business development and operational focus

• Value, homeware, and beauty segments prioritized for growth, with 400+ new apparel stores and 100 revamps planned in three years.

• Local apparel sourcing increased to 82%, with new manufacturing units and verticalization in home categories.

• Omni-channel strategy accelerated by Bash app, store device rollout, and click-and-collect, aiming for all stores to be omni-enabled by FY28.

• Rewards program expanded to 39.9m members, driving incremental spend and precision marketing.

• ESG initiatives include job creation, B-BBEE Level 2 status, and 81.6% local apparel manufacture.