RETAIL: FASHION

This sector comprises four fashion retailers, though WHL also operates in food retail. 

INDUSTRY EXPOSURES

Business:  Load-shedding, water shortages and distressed consumers have weighed most on this sector post-pandemic. Cash sales have become anaemic, whereas credit sales are rising. Issues dealt with in the report:

  • Macroeconomic trends affecting Fashion Retailers 

  • Trend towards e-commerce, with strong competition from Chinese imports distributing via Temu and Shein

  • Pressure to innovate and digitise operations

  • Consumer trends in a weak economic environment

  • WHL facing challenges to restore its ‘fashion sense’ following disastrous foray into Australia 

  • Back-up power and distribution efficiency challenges in the face of power cuts

  • Challenges in implementing Oracle ERP at MRP 

Environment: The Climate Change agenda presents opportunities to position products for the discerning and environmentally conscious consumer, but with consequent exception to follow through on promises made, or risk damage to brand and reputation. 

Society: Customer issues are amongst the highest weighted material issues in the banking industry. These are:

  • Responsible lending and treating customers fairly 

  • Protection of data and personal information

Governance: Despite the relative strength of the SA banking sector, failures internationally have raised scrutiny in the areas of:

  • MRP: Change in leadership and auditors

  • TFG: Resignation of CFO, shareholders challenged executive compensation

  • TRU: Insider selling of shares raises materiality for minority shareholders

  • WHL: Disruptions and high turnover at leadership level

In this report

  • Mr Price (MRP)

  • Woolworths (WHL)

  • The Foschini Group (TFG)

  • Truworths (TRU)

Price: $545

Included:

  • Full 23-page report covering all 4 Fashion companies in the Retail sector

  • Introductory in-person consultation, scheduled at your convenience; learn more about how to link FarSight scores with your valuation process, and get up-to-date answers to specifics on each company under coverage.