Credit Environment Improving, Says South Africa’s Truworths
South African retailer Truworths International said on Thursday it thinks the worst is over for bad debts amongst consumers in Africa’s most advanced economy as its sales on in-store credit rose in the second half of its year ended June 28.
Truworths, which sells 70 percent of its goods on store cards, reported full-year sales growth of 8.2 percent to 11.6 billion rand ($903 million), buoyed by a rise in credit sales since January.
The retailer, which has clothing stores in Nigeria, Ghana and Botswana but makes the bulk of its profits and sales in South Africa, reported it had lowered its allowance for doubtful debt to 12.5 percent from 13 percent six months ago.
“We are experiencing a steady improvement in the credit environment after one of the longest credit contractions for many years,” Chief Executive Michael Mark said.
“The Group’s business model has withstood the downturn in the credit cycle well,” Truworths said.
Read more at Reuters.