The Foschini Group (TFG), a leading player in the fashion and lifestyle sector of Africa’s retail industry, has entered into a definitive agreement to acquire the South African on-demand shopping platform, Quench.
TFG is a South African retail clothing group, which trades under various brands with more than 3,000 stores within its portfolio.
The retail group operates under Michael Lewis, a South African-born British businessman and chairman of TFG.
According to Lewis, the acquisition is crucial for enabling TFG’s inclusive economy, as the group remains committed to prioritizing strategic investments in technology, local sourcing, new stores and brands.
The deal, which aligns with TFG’s plan to become a leading e-Commerce force in Africa, will see the South African retail clothing group deepen its presence upon the integration of Quench’s retail business into its operations.
Claude Hanan, co-head of TFGLabs, the technology division leading TFG’s digital transformation efforts, said the South African retailer will continue to service Quench’s existing partners and customer base and immediately invest in improving its offerings and service.
“Our team has extensive experience across last mile delivery and technology platforms and, together with the Quench team, we believe that we can build on the foundations and continue to enhance the offering,” he said.
The management explained that adding Quench into its existing portfolio of brands will further position TFG as the leading omni-channel retailer in Africa.
This will give the group access to fast, reliable delivery throughout South Africa and proprietary software and engineering capabilities that bring a scientific approach toward planning, least-cost routing and asset utilization.
The acquisition comes weeks after the group announced that TymeBank, an exclusively digital retail bank, revealed plans to open about 600 banking service kiosks in TFG retail outlets in 2022.
As of press time, Dec. 3, shares in TFG were trading worth R122.14 ($7.58) per share, 1.68-percent lower than their opening price on the Johannesburg Stock Exchange this morning.
At this price, the group’s market capitalization is R40.43 billion ($2.51 billion).