|Clothing retailer Truworths says first quarter trading volumes rose 27.8% compared to the same period last year as it expects improved customer footfall during the festive period.|
Challenges facing the sector include inflationary pressures, unavailability of foreign currency required to import critical raw materials and the sharp increase of cheap second-hand clothes that are being smuggled into the country via Mozambique.
In the first quarter ended 10 October 2021, 56.8% of the company’s sales were cash sales and 43.2% were credit sales. This compares to 70.5% and 29.5% respectively in the similar period last year.
According to the company, customer credit limits were reviewed upwards in July 2021 in line with salary increases in the general economy and the slowing down of month on month inflation.
“Credit granting is continuously reviewed taking into consideration developments in month on month inflation and the need to manage the risk of loss of value on the debtors book,” said the company in a trading update.
The quarter October to December is traditionally the company’s strongest in terms of trade volumes.
“We expect that tradition to carry on this year subject to any Covid-19 restrictions that may be imposed.
Previously, the company said it would focus on product availability and affordability with emphasis on in house manufacture especially where fabrics are sourced locally with no direct forex output.
Group subsidiaries include Truworths, Topics and Number 1 Stores.
On the Zimbabwe Stock Exchange the Truworths share is trading at ZWL2.35 with a market capitalization of ZWL$903.52 million – Harare