LIVINGSTONE MARUFU
Listed clothing retailer, Truworths Limited, is expecting bumper sales as the demand for clothing is anticipated to be high in the upcoming festive season.
Truworths company secretary Brenda Chibanda said the retailer was putting all cards on the table this festive season.
She hopes the season will revive the business which suffered slow business caused by Covid-19 lockdown measures put in place by the government to curb the spread of the deadly virus.
“The quarter October to December is traditionally the strongest in terms of trade volumes. We expect that tradition to carry on this year subject to any Covid-19 restrictions that may be imposed,” Chibanda said.
Truworths, which operates Truworths Men, Topics and Number 1, said trading volumes for the quarter increased by 27.8% compared to the similar period last year.
About 56.8% of sales were cash sales while 43.2% were credit sales and this compares to 70.5% and 29.5% respectively in the similar period last year.
Chibanda said customer credit limits were reviewed upwards in July 2021 in line with salary increases in the general economy and the slowing down of month on month inflation.
With inflation ravaging the economy, Truworths also increased the price in line with the movement of parallel market exchange rate.
She said credit granting is continuously reviewed taking into consideration developments in month on month inflation and the need to manage the risk of loss of value on the debtors’ book.
Chibanda said the trading environment was characterised by reduced trading hours in July and August due to Covid-19 induced lockdowns.
She said although the auction rate remained largely fixed over the period, the alternative market rate depreciated the local currency.
Month on month inflation was in single digits but worryingly showing an upward trend towards the end of the quarter.
Truworths expects liquidity in the economy will remain constrained until a bail-out relief package is implemented.
