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27-10-2024
JOHANNESBURG: South African fashion and homewares retailer TFG (TFGJ.J), opens new tab has bought UK-based fashion and lifestyle retailer White Stuff, it said on Friday, adding the deal will help it reach “critical mass”.
The acquisition was made through the London subsidiary of TFG, which has a portfolio of 35 leading retail brands in 23 countries, including Australia.
TFG CEO Anthony Thunstrom said the acquisition marks a significant milestone in TFG London’s medium-term strategy “to achieve critical mass” and to add new brands to the group, having first acquired Phase Eight in 2015.
“This acquisition represents a meaningful build out of our London business, adding close to 50% to TFG London’s turnover,” Thunstrom said. “White Stuff is a prominent high brand-equity business in the UK, and has potential for strong, sustained growth.”
The addition of White Stuff to TFG London diversifies and strengthens the retailer’s existing womenswear portfolio, adding the first lifestyle brand, TFG London CEO Justin Hampshire added.
The White Stuff brand joins a suite of UK-based fashion brands already owned by TFG, such as Hobbs, Whistles and Phase Eight.
In the financial year to April 30, White Stuff achieved revenue of 154.8 million pounds ($201 million) and core profit of 8.6 million pounds, TFG said.
Over 85% of its revenue was generated from the store estate and online, with the remainder from its international and wholesale operations.
TFG will be retaining the experienced senior management team of White Stuff led by CEO Jo Jenkins, who said the deal represents the natural next step for the business.
White Stuff has 113 stores and 46 store-in-store in Britain within John Lewis, Marks & Spencer (MKS.L), opens new tab and other independent retailers.
The business also operates six stores and 25 concession stores across Europe and sells merchandise online internationally.
The group also looks set to bring successful UK brands to South Africa, with TFG also set to bring sports retailer JD Sports to South Africa.
TFG signed a franchise agreement with JD Sports to become its retail partner in South Africa in March 2024. The group said that it hopes to bring the retailer to South African shores by late 2024.
JD Sports sells products from recognized brands, such as Nike, Adidas, and Puma, as well as its own private labels, including Pink Soda and Supply & Demand.
TFG plans to open 40 JD stores in South Africa over the next five years.
‘We are excited to be the exclusive partner of JD Sports in South Africa. This partnership allows TFG to bring a new compelling international sports fashion offering to the South African market,” said Anthony Thunstrom, TFG CEO, in March.
“This further bolsters our existing Sports positioning, with our Sportscene, Totalsports and Sneaker Factory stores already being the destinations of choice for athletic and leisure sports apparel.”
Further moves into the sneaker retail space may prove risky, given the liquidations of popular retailers Cross Trainer and Drip Footwear.
Sports retailer Frame Leisure Trading, which owns Cross Trainer and XTrend, is set to undergo liqudiation proceedings at the Pretoria High Court next week after its business rescue practioners believed that there was no chance of the company being saved. The sports retailer was severely hit by the COVID-19 pandemic, July 2021 unrest, and heavy rental escalations, whilst the drop in consumer spending and increased operational costs meant the group could not keep up with all debt repayments. (Int’l Monitoring Desk)
