Tekkie Town continues to struggle – or, as Pepkor states in its annual results for the year ending 30 September 2019: it is still addressing “stock-holding and other inefficiencies in the business to enhance the quality of earnings.” The company attributes this to “challenging market conditions for footwear” – although in the same division footwear chain Shoe City reportedly “achieved healthy market share gains”.
The apparel retailers in Pepkor’s Speciality Division, of which Tekkie Town was once the flagship brand, gave “strong performances”, reports Pepkor. They are Dunns, Refinery and John Craig. “John Craig and Refinery delivered very good performances with increased profitability, while the turnaround of Dunns is progressing well with aggressive sales growth resulting in a significant reduction in losses,” the company says.
Speciality Division sales grew 7.7% across the above-mentioned five retailers, but same store growth was only 3%. There are now 949 stores in the division, which represents a gain of 39 stores and 22 000m2 retail trading area over the same period last year. During the year 73 stores were opened and 34 closed.
The new Hammarsdale distribution centre (DC) was commissioned with all Speciality retail brands successfully integrated into the DC shared with Ackermans.