South African retail group Truworths International is taking proactive steps to bounce back from a decline in profit by implementing new growth strategies. One such strategy involves launching new clothing brands and entering the budget-clothing market, which will support the company’s medium-term growth. In addition, Truworths plans to establish specialty stores that cater to the preferences of young and casual consumers, while also expanding its online presence. These initiatives, along with improvements in its debtors book, are expected to drive Truworths’ future growth.

The apparel industry faced numerous challenges in 2020 due to the COVID-19 pandemic. Store closures and changing consumer behaviors, including a shift towards more comfortable and relaxed clothing, adversely affected sales. Truworths experienced a decline in headline earnings per share, with Group retail sales dropping by 8.5% to 9.7 billion rand ($660.61 million). Truworths Africa, the largest business within the group, witnessed a 6.8% decrease in sales. Office, a shoe chain owned by Truworths, experienced a significant decline of 24.6% in sterling terms and 13.3% in rand.

Despite these challenges, Truworths has maintained an optimistic outlook and expects sales to improve in the second half of the financial year, provided there are no further lockdowns in South Africa. The company anticipates a recovery in the South African market compared to the previous year, which was heavily impacted by lockdown measures. On the other hand, Office plans to implement a turnaround plan by closing marginal and unprofitable stores, resulting in a 22% reduction in trading space for the 2021 financial year.

Truworths’ focus on introducing new store concepts, expanding its digital presence, and entering the budget-clothing market demonstrates the company’s dedication to adapting to the evolving apparel industry. By targeting younger, more casual consumers and expanding its online reach, Truworths aims to remain profitable and relevant in the market. With a strategic approach to growth initiatives and improvements in its debtors book, Truworths is well-positioned for future success.

For more information on South African retail group Truworths International and its growth initiatives, please visit:

1. Truworths International Official Website
2. BBC News – Business in Africa