Foschini sales up on UK division

The Foschini Group posted better than expected Christmas sales, buoyed by its recent UK acquisitions, sending its shares up 6% to a 20-month high.

The clothing and homeware retailer expanded in developed markets as a weak economy, tighter credit rules and tough competition hampered growth in South Africa. TFG, which bought Britain's Phase Eight in 2015 and last year added high street chain Whistles, said sales at its international division were 47.9% higher in December than a year ago.

"Christmas trading was above expectation, with TFG Group sales growth for December of 14.6%," the company said.

TFG's trading update is more upbeat than those of its JSE competitors, who are struggling to grow sales in an economy forecast to have expanded by less than 1% in 2016.

Truworths International and Woolworths last week flagged a drop in half-year profit. - Reuters

• Walmart subsidiary Massmart's sales grew 7.7% to R91.2-billion in the 52 weeks to December 25, beating consumer inflation of 6.7%.

The sales update ahead of its results scheduled for release on February 26 echoed Woolworths' sales update last week, showing decelerating sales growth compared with 2015.

For the 52 weeks to December 27 2015, Massmart reported 8.4% sales growth.

"As a general remark on recent trends, there was a slight pick-up in South African sales growth but a continued decline in non-South African sales growth," Massmart said in its sales update.

The group is split into four divisions. Fastest sales growth was reported by Masswarehouse, which houses Makro. It grew sales 11%. The next fastest-growing division was Masscash, whose brands include Cambridge Food and Jumbo Cash & Carry. Its sales growth was 7.5%.

Massdiscounters, which houses Game and Dion Wired, grew sales 5.3%. Excluding new stores, sales growth was 1.5%.

Massbuild grew sales 5.6%. Comparable store growth was 1.7%.