South African retail store Truworths plans to close its loss making UK stores in the next two years. The company joins other South African firms that are downsizing their international businesses due to poor performance.
Recent developments in the retail world have seen shoppers move from shopping in physical stores to shopping online. The move has affected Truworths’ business in the UK.
Another factor that has negatively impacted Truworths is Britons’ preference to spend money on experiences rather than on items.
Additionally, uncertainties relating to the outcome of the Brexit negotiations have contributed to a slowdown in UK based businesses.
All these factors have resulted in Truworths booking a non-cash impairment charge of 97 million pounds (KSh12 billion) against Office Holding’s assets.
The South African fashion retailer closed 17 stores in the year that ended in June 2019, of which 16 were concession stores across House of Fraser and Topshop.
Truworths is a Cape Town-based clothing retailer. It has 728 stores in South Africa, and 49 outlets spread out across Africa.
In December 2015, Truworths acquired the UK shoe chain Office Holdings for £256 million, a move that was meant to diversify its business.
