The Foschini Group lost 99,000 trading hours in the three months through September because of rolling blackouts.
That’s more than four times the lost hours in the same period last year. The total for the first half of TFG’s financial year was 132,000 hours, according to a trading update published on Tuesday.
The Cape Town-based clothing chain’s announcement highlights the devastating effect power cuts have on businesses in Africa’s most industrialised economy. Despite installed capacity of more than 40,000 megawatts, state-owned Eskom struggles to keep the lights on due to old coal-fired plants that keep breaking down. The utility has implemented electricity rationing on 54 days of the third quarter and on 140 days so far this year.
Load-shedding: Foschini loses 99,000 shopping hours in three months
Image: Bloomberg
The Foschini Group lost 99,000 trading hours in the three months through September because of rolling blackouts.
That’s more than four times the lost hours in the same period last year. The total for the first half of TFG’s financial year was 132,000 hours, according to a trading update published on Tuesday.
The Cape Town-based clothing chain’s announcement highlights the devastating effect power cuts have on businesses in Africa’s most industrialised economy. Despite installed capacity of more than 40,000 megawatts, state-owned Eskom struggles to keep the lights on due to old coal-fired plants that keep breaking down. The utility has implemented electricity rationing on 54 days of the third quarter and on 140 days so far this year.
While many businesses and shopping malls have invested in backup power systems to ensure continuous electricity supply, that adds to running costs, especially after the price of diesel and gasoline reached record highs this year.
Despite the lost business hours, TFG Africa’s retail turnover grew 17% in the first half of its financial year and total group turnover was 24% higher.
More stories like this are available on bloomberg.com
READ MORE:
Eskom implements stage 4 load-shedding
‘The power cuts had an impact’: Mbalula says SA's only driver’s licence card machine is back online
South Africa still in the dark 30 days after Ramaphosa cut short his UK/US trip to address electricity crisis
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos