This archive report was first published on 21 August 2019.
Published on August 21, 2019, South African retail giant Truworths has announced plans to close its loss-making UK stores within the next two years.
The company's decision comes as no surprise, given the recent shift in consumer behavior towards online shopping. This trend has significantly impacted Truworths' business in the UK, where shoppers are increasingly opting for digital platforms over physical stores.
Another factor contributing to Truworths' struggles in the UK is the British public's preference for spending money on experiences rather than material goods. This shift in consumer spending habits has further exacerbated the challenges faced by the retailer.
The uncertainty surrounding the outcome of Brexit negotiations has also had a negative impact on UK-based businesses, including Truworths. As a result, the company has been forced to book a non-cash impairment charge of £97 million (approximately KSh12 billion) against Office Holdings' assets.
Truworths' decision to close its UK stores is not an isolated incident. The company has already closed 17 stores in the year ending June 2019, with 16 of these being concession stores across House of Fraser and Topshop.
Headquartered in Cape Town, South Africa, Truworths operates a total of 728 stores in the country and 49 outlets across Africa. The company's acquisition of UK shoe chain Office Holdings in December 2015 for £256 million was intended to diversify its business, but it appears that this strategy has not yielded the desired results.
