JSE-listed apparel and homeware retailer The Foschini Group (TFG) plans to add affordable branded footwear and clothing chain Street Fever to its portfolio, in a deal that will see it taking over 114 Street Fever stores.
TFG revealed its latest acquisition in a media statement on Wednesday. However, it did not cite the rand value of the deal and did not issue a Sens announcement, which indicates the deal is not a major category announcement as per JSE rules.
The acquisition, which was done through TFG’s fast-growing value athletic and leisure footwear retail brand Sneaker Factory, will play a vital role in strengthening the group’s presence in the value branded footwear segment.
TFG says it plans to rebrand at least 90 of the Street Fever stores as Sneaker Factory stores once the deal has been concluded, while the rest will be taken over by other TFG brands.
TFG currently owns over 30 brands spread out in the clothing, homeware and jewelry space including Totalsports, Sportscene, American Swiss, Coricraft, @home, The Fix and Markham, amongst others.
Through the deal, TFG will absorb about 650 jobs provided by Street Fever – an independent retailer that began its journey as a Cape Town based family business.
“We’re pleased to be in a position to safeguard employment for the Street Fever staff despite the current challenging trading conditions,” said TFG CEO Anthony Thunström.
“As we have shown with previous acquisitions such as Jet, Granny Goose and Tapestry Home Brands, TFG has an established track record of integrating businesses successfully and using our scale to unlock accelerated growth,” he added.
Sneaker Factory’s head of business Nizamudien Parker noted: “Loyal Street Fever customers can rest assured that they will find familiar faces in the rebranded Sneaker Factory stores as the staff will be retained, while TFG will bring even more competitive pricing, exciting new brands, accessories and apparel, while having access to TFG credit and our industry leading Rewards programme.”
The transaction is subject to approval processes by competition authorities.
Listen to Thunström speaking to Moneyweb deputy editor Suren Naidoo about the group’s expansion plans and Black Friday sales (or read the transcript):