Foschini poised to go global

The Foschini Group on Friday became the third South African retailer in less than a year to announce an acquisition in an overseas developed market.

Foschini, which owns the stores of the same name, as well as @home, will pay about R4.2-billion for an 85% stake in UK-based Poppy Holdco, which trades as Phase Eight.

The chain has more than 100 stores in the UK and Ireland and 200 concessions.

It has shops in 16 markets, including Germany, Switzerland, Sweden, The Netherlands, the Middle East, Hong Kong, Singapore, Malaysia and Australia.

Foschini said that Phase Eight would fit well with its women's fashion brands and that both service the same middle- to higher-income market.

The UK retailer would be a platform for the expansion of Foschini's brands internationally, the company said.

Rhynhardt Roodt, portfolio manager for Investec Asset Management's Equity Fund, agreed.

"I can see the strategic rationale if Foschini uses this acquisition to expand internationally," he said.

And bringing the UK company on board would give Foschini access to the latest fashions in the northern hemisphere.

Foschini said it might introduce Phase Eight products in South Africa.

Phase Eight is a growing group in a very competitive market.

• JSE-listed Spar announced in August that it would acquire BWG Group, owner of Spar Ireland and southwest England.

Woolworths last year bought Australian department store chain David Jones.