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VENTURES AFRICA – South African clothing retailer Foschini Group is expanding its West Africa operations by launching four stores into Ghana’s retail market before the end of the year, the South African retailer’s financial director Ronnie Stein has said.
The plan to expand into West Africa’s second largest economy, Ghana, is part of the retailer’s strategy to expand its store outside South Africa to about 200 in the next three years.
Foshini entered the West African market last year by opening two stores for Nigeria’s over 160 million population. It would open 42 new stores in the rest of the continent in fiscal 2015 and 38 in 2016.
Foschini, which has been tagged the worst-performing clothing retailer on the Johannesburg Stock Exchange (JSE) last year says it plans to open 21 new stores on the rest of the continent by March this year.
Stein had revealed last year that the retailer have plans to open about six new stores in Zambia.
It however says its plan to open store in Kenya has been shelved for now.
Stein stated that the retailer had planned to launch in East Africa’s largest economy (Kenya) but it had deferred this move when the opportunity arose in Nigeria which is now becoming the home to more shopping malls.
“East Africa we have had a look at but we are not moving there yet. We can’t do everything at the same time,” Steyn told Reuters yesterday.
Africa’s spending power is estimated to rise to $1.4 trillion by 2020, according to a Mckinsey report.
Foschini has joined other South African retailers like Shoprite, Massmart and Truworths in a northward investment trend, as it seeks expansion beyond its home market which has become more competitive and over-traded.
The South African retailer, which has been struggling with growth at homefront, seeks to take advantage of the rising middle class, whose growing spending power and maturing retail palates provide large retailers an emerging opportunity for growth.