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South Africa’s Clothing Retailers Foschini Plans Expansion in West Africa

South Africa’s Clothing Retailers Foschini Plans Expansion in West Africa

South African clothing retailer Foschini Group plans to open four stores in ghana by the end of this year, increasing its west African presences, its financial director Ronnie Steyn told Reuters.

In 2013 Foschini broke into the region by opening two stores in Nigeria, Africa’s most populous country, as part of a strategy to double its stores outside of South Africa over the next three years to about 200.

Steyn said the clothing retailer is however still holding off from its planned entry into the east African market through Kenya

“East Africa we have had a look at but we are not moving there yet. We can’t do everything at the same time,” he said.

Reuters said more and more South African firms are looking to the continent’s growing middle class for more sales, while local buyers grapple with a tight economic conditions that has seen retail growth stagnate.

Consulting firm McKinsey estimates that by 2020 Africa’s spending power will be $1.4 trillion, up from $860 billion in 2008.