South African retailer Steinhoff’s sales grow 48% in the nine months to the end of June, powered by acquisitions and appeal to budget-conscious consumers.
Stellenbosch-headquartered furniture, clothing and general merchandise retailer Steinhoff has revealed a surge in sales for nine months ending June 2017. The group revealed that sales had reached €14.9bn ($17.7bn). Steinhoff, which is the second largest furniture retailer globally after IKEA, owns a portfolio of retailers across Africa, the UK, Australasia and now also in the US.
Its latest acquisitions have included Poundland (UK, general merchandise), Mattress Firm (US, furniture) and Fantastic (Australia, furniture).
Steinhoff’s CEO Markus Jooste has also said that the strong financial performance has been “underscored by the resilience of the low-price, value and discount market segments in challenging consumer environments.”
Steinhoff wants to spin off its African retail businesses by listing them with a controlling stake in supermarket chain Shoprite on the Johannesburg stock as Steinhoff Africa Retail (STAR). It has confirmed its intent to complete the listing before the end of September 2017, which would allow STAR to acquire half the voting rights in Shoprite.
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