The combination of unprecedented levels of power cuts and overburdened consumers has seen JSE-listed The Foschini Group selling more items on promotion than planned as inventories piled up, eating away at gross margins. On Friday, the fashion and homeware retailer informed investors that the group’s gross margins contracted to 47.9% in the financial year ended March 2023, compared to 48.5% previously.
“Diligent expense management enabled the group to further grow profits in a very challenging retail environment, especially in South Africa, where increased load shedding adversely impacted our store operations and our customers. We have a resilient business that is focused on executing its key strategic initiatives and delivering consistent market share gains.