Trueform unit steps out with new stores
--------------------------------------------------------------------------------
CAPE TOWN Clothing chain Queenspark is opening three more stores in the current financial year and refurbishing a number of its older generation stores, including its flagship in Sandton, CEO Catherine Radowsky says in the Rex Trueform group`s latest annual report.
The notes to the annual statements show that the group has R9,5m in capital commitments for the current financial year, almost double the R5,4m committed at the same time last year.
All the capital expenditure would be funded from the group`s internal cash flow, it said.
Apart from Queenspark, Rex Trueform also has a manufacturing arm, which in the 1990s was the mainstay of the group.
In the year to June, manufacturing revenue was R91,5m, excluding inter-segment sales, while retail turnover was R282,1m. SA accounted for 92% of group revenue but the group also generated R21,5m in the US and R7,3m in Australia.
The group`s manufacturing operations had struggled because its range of tailored men`s clothing had shown disappointing growth in the local market and its exports to the US, while elsewhere had become uncompetitive as a result of the strong rand, Radowsky said.
The group is adjusting to short production runs but the loss of long production runs inhibits its growth.
Radowsky said Queenspark had a successful year and maintained its margins in normal trading. However, a reduction in and revaluation of stocks resulted in a 40% fall in net operating income.
The chain also reduced its trading space 10,4% through the closure of three nonviable stores and adjustment of space in others, but this had the effect of improving trading densities.
Trading density is turnover a square metre of retail space.
Queenspark has just opened new stores in Durban in La Lucia Mall and Musgrave Centre.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
