Generally clear, forthright and frank reporting inspires confidence in the maturity of Foschini’s leadership. The company appears to be particularly aware of and responsive to its customer issues, such as the impact of the Affordability Regulations on credit sales, for which it presented a responsible and well-motivated strategy, though transparency around treatment of customers needs to improve.

Sound board governance and actions taken to strengthen the board (in particular to support the company’s international growth strategy) bode well for the new acquisition of the Retail Apparel Group (RAG) in Australia. Foschini needs to develop a moral code to support its shared value strategy, with insufficient evidence of how this will play out in the company’s business dealings. Weak reporting on fair labour, management of talent and supply chain responsibility are red flags that Foschini should address.

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