A case study on $1 deals including Shoprite and Spar. Last month Truworths Zimbabwe filed for corporate rescue as the company was in financial distress. Now we have some details about Truworths’ situation.
The shops are practically empty, just a few suits and dresses. The brand seems now worthless in Zimbabwe where I can't recall the name of the place I last bought jeans and shirts from.
What are the other key assets/ strengths they possess that could be used to Pivot out of the clothing business. Edgars seems to have re-strategized and survived.
I hear Zimbabweans in S.A are laughed at for wearing Mr. Price. That's a good sign for Mr. Price in Zimbabwe, it means they sell reasonable quality at CHEAP prices.
Only question is, can Mr. Price keep those low prices with Zimbabwe's taxes, currency risks and maybe cost structure (Who has cheaper rentals and labor costs, SA or Zim?).
Overall, I think Mr. Price's model stands a good chance here. Check out the trending Suits World in Harare, could be similar to Mr. Price. You can get a suit there for $30, not the best quality. My mom once brought me white sneakers from Mr. Price, not Nikes but sure did last.
Most definitely S.A has implemented l think , Dubai has noon an online grocery delivery shop which does deliver groceries in no time they have set up same groceries banks near residential areas and it’s 24/7 with even fresher vegetables than some shops .
I think I'd still consider buying it if I can limit my liability. But I'd still likely have to inject money in, depending on the current cash flows. I'm curious to know if they have any assets I could use in completely pivoting the business out of fashion. What are your ideas?
Closely monitoring developments at Truwoths. There is nothing to buy in Truworths right now.....working on rolling out a similar chain
The shops are practically empty, just a few suits and dresses. The brand seems now worthless in Zimbabwe where I can't recall the name of the place I last bought jeans and shirts from.
What are the other key assets/ strengths they possess that could be used to Pivot out of the clothing business. Edgars seems to have re-strategized and survived.
Yes true. The brand is no longer as valuable.
What if Mr Price came for example. Do you think that could work?
I hear Zimbabweans in S.A are laughed at for wearing Mr. Price. That's a good sign for Mr. Price in Zimbabwe, it means they sell reasonable quality at CHEAP prices.
Only question is, can Mr. Price keep those low prices with Zimbabwe's taxes, currency risks and maybe cost structure (Who has cheaper rentals and labor costs, SA or Zim?).
Overall, I think Mr. Price's model stands a good chance here. Check out the trending Suits World in Harare, could be similar to Mr. Price. You can get a suit there for $30, not the best quality. My mom once brought me white sneakers from Mr. Price, not Nikes but sure did last.
Look at the numbers of SHEIN l even hear they’re soon going to go for an IPO .
It's an interesting one to watch. I do think a little bit of their momentum has gone.
More countries will add tarrifs I think.
Most definitely S.A has implemented l think , Dubai has noon an online grocery delivery shop which does deliver groceries in no time they have set up same groceries banks near residential areas and it’s 24/7 with even fresher vegetables than some shops .
Online shopping has taken over now
That is a big but I do think in-store shopping, especially for clothes, still has the advantage.
It's so much harder to buy clothes online.
I think I'd still consider buying it if I can limit my liability. But I'd still likely have to inject money in, depending on the current cash flows. I'm curious to know if they have any assets I could use in completely pivoting the business out of fashion. What are your ideas?