South African-based global retailer, The Foschini Group (TFG), has seen its brands’ sales in Australia slip amid “tough trading conditions”.

Operating a portfolio of 34 brands, including Australian mainstays Tarocash and YD, TFG’s latest financial disclosure shed light on growing sales across the group for the fiscal year ending March 31.

This groupwide 7.1 per cent increase in sales, however, opposed the trend in Australia.

“In Australia, consumers remain value-oriented amidst ongoing tough trading conditions,” TFG said. Sales decreased by 1.5 per cent for the full year, and by 1.3 per cent in the fourth quarter.

The Australian segment contributed 13.5 per cent of the group’s total turnover; its second largest subsidiary, TFG London, grew its sales by 29.4 per cent year-on-year.

Trading as the Retail Apparel Group (RAG) in Australia, TFG’s presence in the country, and New Zealand, comprises more than 550 stores. It entered the country following its full acquisition of RAG in 2017, for a reported $302.5 million.

Going forward, TFG said that “geopolitical uncertainty is still expected to contribute to elevated input costs and cautious consumer behaviour”, adding that its focus will remain on limiting costs and improving efficiencies.

“The group maintains a sound balance sheet position, supported by committed banking facilities and prudent working capital management,” TFG said.

It added that its “weaker” performance in Australia will contribute to an earnings-per-share decline of 55-65 per cent at year-end.