TFG acquires digital shopping and delivery group Quench
South African fashion retailer The Foschini Group (TFG), through its Labs division, has acquired digital shopping platform and last-mile delivery provider, Quench.
The Quench acquisition, TFGLabs said, will enhance the company’s existing capabilities across the fulfilment network through proprietary software and engineering, “bringing a scientific approach to planning, least-cost routing and asset utilisation”.
“With this acquisition, we gain access to fast, reliable delivery across South Africa while achieving superior delivery unit economics. With 75% of orders currently fulfilled from stores, Quench’s network of micro-carriers will become an essential enabler for our ‘ship-from-store’ strategy,” said Claude Hannan, co-head of TFGLabs.
TFG is a leading retail group in South Africa with 29 retail brands that trade in fashion, value, jewellery, accessories, sporting apparel, cellular, homeware and furniture. the group has over 4,300 outlets in 26 countries and employs more than 34,800 people with over 26.4 million customers.
In November, TFG reported a headline loss for the six months ended September 2020, citing store closures as a result of the Covid-19 pandemic.
The group reported a headline loss per share of 91 cents, down 117.1% from headline earnings per share of 531.2 cents per share previously.
It also highlighted the dilution impact of its R3.95 billion rights offer, and the acquisition of 382 stores and selected assets of Jet from Edcon as reasons for its earnings drag.
The big shift to online shopping and the growth of its mobile sector were among the few highlights for TFG.
It said that while trading conditions remain uncertain during the Covid-19 pandemic, it is able to leverage growing demand in e-commerce and is continuing to invest in that segment. Online turnover, it said, now contributes 14.4% to group retail turnover.
“Our continued investment in our brands, digital transformation initiatives, e-commerce platforms and vertical quick response supply chain capacity, will continue to benefit the group.”
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