Bash drives 48% of TFG'S SA incremental retail turnover - CNBC Africa
The Foschini Group (TFG) has experienced remarkable growth in their incremental retail turnover in South Africa, thanks to their digital retail platform, Bash. Launched in 2023, Bash has achieved profitability ahead of schedule and plays a critical role in TFG’s digital transformation strategy. In just two years, Bash has generated a notable R2.1 billion in revenue and now significantly contributes 48% to TFG SA's incremental retail turnover. Bash was created to streamline TFG’s fragmented online presence by consolidating over 15 separate brand websites into one cohesive platform. This integration aims to enhance the customer experience by offering a mobile-first, unified shopping experience. CNBC Africa discussed Bash's success and the digital evolution with Bash's co-founders Luke Jedeikin and Claude Hanan. According to Claude Hanan, the preparation and execution of Bash involved extensive planning and effort spanning several years. "There was a full year of planning, followed by a year of building, and now two years of operation," he mentioned. The path was not without its challenges, but the team remained dedicated. Hanan emphasizes that the success of Bash is attributed to the perseverance and receptiveness to transformation exhibited by TFG as a whole. Luke Jedeikin, discussing the reasons behind Bash's rapid success, highlighted the advantages of leveraging TFG's well-established brand assets, such as Fashini, Total Sports, and Sportsy. "Allowing a customer who already loves and knows TFG brands to shop all of these in a single mobile-first experience proved to be extremely compelling," Jedeikin explained. By enhancing TFG’s existing strengths and integrating them into a seamless online and offline shopping experience, Bash has surpassed expectations. Addressing how they maintain a competitive edge, Jedeikin attributed part of their innovative approach to examining retail environments in emerging markets like Southeast Asia and South America, which face different challenges compared to first-world economies. He noted, "In emerging markets like South Africa, brick-and-mortar shopping is still dominant, and innovation comes from integrating technology into these traditional models rather than replacing them." Jedeikin predicts an optimistic future for TFG’s Omnichannel model, where technology and traditional retail converge. They have introduced a pilot called the 'endless aisle,' which has already shown promising results. "We've just surpassed 300 million rand in this area, but the goal is to scale that figure into the billions," he stated. Furthermore, Claude Hanan addressed the importance of attracting skilled talent as they evolve Bash and bolster TFG's leadership in digital retail. The focus is on building the best technology team capable of maintaining in-house competencies that are critical to their success. "We’ve developed a hiring strategy that attracts top software engineers, product managers, data scientists, and other tech experts," Hanan added. Wrapping up the interview, Luke Jedeikin provided insights into Bash's future plans, which include further developing the Omnichannel model and expanding smart store capabilities. "In the next year, we plan to introduce new hardware and digital capabilities to almost 3,000 TFG stores, solidifying TFG's position as a model for smart stores and innovation in the retail market," he shared. The compelling blend of strategic vision, execution excellence, and innovative digital practices has positioned Bash as a pioneer in South Africa’s retail landscape, signaling transformative growth for TFG's future.