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A snapshot of Lewis Group (LEW) - 1H21 results. -
Clicks has long targeted opening 900 stores in South Africa. We look at the number of shopping centres in the country to assess what further opportunities there may be beyond this 900-store target. The pandemic could bring forward some of its store openings as more retail space becomes available. Despite both CLS and DCP regularly reporting increased market share, we find that their combined scheduled medicine market share had been stagnant for the last three years. This is despite the higher rate of store rollouts. While return on equity has been reducing for the past six years, CLS only reduced its medium-term ROE target range in its latest results. We analyse the components of ROE to assess the cause of this decline and question whether the previous targets would have been achievable. -
In our weekly updates, we summarise key statistics in the spread of Covid-19 in South Africa. -
A snapshot of Pepkor (PPH) - FY20 results.
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A snapshot of Spur (SUR) - FY20 results.
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A snapshot of Tiger Brands (TBS) - FY20 results.
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A snapshot of Spar (SPP) - FY20 results.
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A snapshot of Rhodes Food Group (RFG) - FY20 results.
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TFG’s acquisition of Jet could provide it with considerable growth opportunities, firstly as it turns the business around to its previous potential, and secondly, to enable TFG to become a key competitor in the value segment. Our comparison of the current Jet business to its historical performance, shows scope for substantial improvements in trading densities and GP margins. We assess TFG London’s last impairment test assumptions and believe that an impairment of c. R2bn-R3bn could be incurred in FY21. Our analysis of TFG’s online and physical store performance in 1H21, shows that TFG London’s physical stores sales may have contracted significantly in 1H21. TFG Africa’s online sales in 1H21 are equivalent to the sales of 86 of its physical stores, which in the context of its store footprint, is still insignificant. We do not think there will be a dramatic change in the online sales contribution post-Covid 19 for TFG Africa, as its middle-market customer base may revert to the preferred in-store shopping.
