Truworths (TRU) – Through the Ages

TRU reported weak 1H18 results with turnover growth that remains persistently low. We look at the consumer spend on clothing across age groups and based on TRU’s credit customer average age of 41 years, it would appear that a substantial portion of its customers may be in a less lucrative market segment. Identity’s average credit customer age is 35 years, which means that any further ageing of their customer base could also result it moving into this less compelling clothing market segment, in our view.