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Value-creating business model
The Group’s business model is underpinned by the Business Philosophy and distinguishes the Group from its industry peers, with its unique DNA providing a sustainable competitive advantage. The Group’s Purpose, as defined in the Business Philosophy, is to provide exclusive and aspirational apparel to youthful, fashionable consumers using predominantly company-owned brands in Truworths and third-party brands in Office. The successful execution of this business model will create value for the Group’s primary stakeholders as defined in the Group’s Vision for shareholders, customers and employees, as well as for other stakeholders, including suppliers, lenders, landlords and the regulators in the countries in which the business operates.
As a fashion retailer, the Group’s business model is to interpret the fashion trends, design and procure merchandise through an efficient local and international supply chain, and to sell it to consumers for cash or on account through its network of retail stores and e-commerce platforms.


* Including lay-bys and loyalty (Truworths).
OUTPUTS
OUR PRODUCTS, BY‑PRODUCTS AND WASTE
The Group’s value-creating business model is focused on producing fashion clothing, footwear, homeware and related merchandise of international styling and quality to cater for the lifestyle needs of our customers. An inevitable consequence of the creation of our products is the creation of waste in the supply chain during the course of production, packaging, distribution and transportation processes, mostly undertaken and managed by our suppliers and service providers.
RETAIL SALES OF
R21.4 billion
(2023: R20.6 billion)
COST OF SALES
R9.9 billion
(2023: R9.4 billion)
TOTAL EMISSIONS#
75 936tCO2e
(2023: 72 274tCO2e)
Including freight from offshore to SA and deliveries beyond SA borders.
THE CAPITALS OF VALUE CREATION
Inputs into the Group’s business activities comprise the financial, manufactured, intellectual and human capitals available to and utilised by the Group as well as the social and relationship capital evident in the important relationships and partnerships with stakeholders.
Through its supply chain, which outsources the manufacturing and transportation processes to suppliers, the Group indirectly consumes natural capital in the form of raw materials such as cotton, wool and leather, as well as water and carbon‑depleting energy resources. The Group’s operations also utilise water and carbon-depleting energy resources in its head offices, distribution centres and stores, and the business travel undertaken by its employees. Inputs provided below are measured at the end of the 2024 reporting period.

FINANCIAL
CAPITAL
INPUTS
INPUTS
Financial capital relates to the funding received from the providers of capital and the financial resources available to the Group.
- Equity of R9.5 billion (2023: R7.7 billion)
- Net debt of R306 million (2023: net debt R850 million)
CONSTRAINTS
CONSTRAINTS
The Group has access to borrowing facilities of R3.6 billion in South Africa. With net debt of R306 million (less than 10% of total funding facilities) the Group does not face any immediate financial capital constraints. In addition, should the need arise, the Group could raise further financial capital through an issue of shares or by utilising its robust balance sheet to raise additional loan funding.
Refer to Chief Financial Officer’s report for more detail.

MANUFACTURED
CAPITAL
INPUTS
Manufactured capital is the physical infrastructure used in the distribution and selling of merchandise, including the distribution centres, leased retail stores and the information technology systems (including websites) throughout the business.
- 888 (2023: 876) stores
- Three (2023: three) main distribution centres
- Eight (2023: seven) e-commerce sites
CONSTRAINTS
Constraints include distribution centre capacity during peak periods (which will be alleviated once the new DC has been commissioned in the 2025 financial period), local manufacturing capacity and the financial viability of the local supply base. Securing additional retail space in key locations where the Group’s existing stores are overtraded is a further constraint. International and local supply chain challenges, including congestion at South African ports, increases the delivery time of merchandise to the DCs and stores.
Refer to Material issues, risks and opportunities for more detail.

INTELLECTUAL
CAPITAL
INPUTS
Intellectual capital focuses on knowledge in the organisation, systems, processes, trademarks, intellectual property and brands.
- More than 40 own brands across Truworths and Office
- Sophisticated merchandise, distribution and account management systems and processes
- Policies, procedures, and manuals
CONSTRAINTS
Ageing merchandise and warehouse management systems in Office are preventing further efficiencies from being unlocked.
Refer to Material issues, risks and opportunities for more detail.

HUMAN
CAPITAL
INPUTS
Human capital relates mainly to employees’ skills, capabilities, development and experience.
- 12 007 (2023: 12 126) employees
- Values-driven corporate culture
- Market-leading merchant trainee programme
- Extensive skills training and management development
CONSTRAINTS
Scarcity of specialist skills and portability of skills which are in demand in other countries, as well as pressure on salaries.
Refer to Human capital (Truworths) and (Office) for more detail.

SOCIAL
AND
RELATIONSHIP CAPITAL
INPUTS
Social and relationship capital deals broadly with stakeholder relationships and engagement, corporate reputation and values.
- 2.9 million (2023: 2.8 million) active account customers
- 20.9 million (2023: 18.9 million) loyalty programme members
- More than 500 merchandise suppliers across the Group
- Three trusts fund the corporate social investment (CSI) programme with investments totalling R267 million (2023: R239 million)
CONSTRAINTS
South African consumers are under pressure with reduced disposable income as they contend with high electricity, food, borrowing and general living costs, negatively affecting account payments and credit scores. These factors constrain both account acquisition growth and account purchase behaviour, as well as cash sales.
Refer to Material issues, risks and opportunities for more detail.

NATURAL
CAPITAL
INPUTS
Natural capital relates to environmental resources directly or indirectly utilised by the Group.
- Natural materials depleted in the manufacturing of merchandise and packaging materials
- Consumption of fossil fuels in the supply chain
- Electricity and water consumed in operations
CONSTRAINTS
Electricity and water supply in South Africa is unstable due to the failing infrastructure.
Refer to Material issues, risks and opportunities for more detail.
IMPACT OF BUSINESS ACTIVITIES ON CAPITALS
The outcomes of the Group’s operational and financial performance have created value for stakeholders, supported by the Group’s Business Philosophy. The Group continued to generate robust cash flows, and maintained its dividend payout ratio.

FINANCIAL
CAPITAL
OUTCOMES
OUTCOMES
Financial capital has increased owing to higher retail sales, increased interest income due to higher interest rates, offset by reduced margins, higher trading expenses and finance costs. The Group returned R2.2 billion of financial capital to shareholders through dividends, and interest of R189 million to lenders.

MANUFACTURED
CAPITAL
OUTCOMES
Manufactured capital was increased through the 1.2% increase in trading space across the Group and the investment in the construction of the new Truworths distribution centre.

INTELLECTUAL
CAPITAL
OUTCOMES
Intellectual capital deployed by the Group has increased, mainly through new account management technology and processes, the enhancement of the e-commerce platforms and the ongoing refinement of newly launched brands. The Group’s focused efforts to turn around the performance of Office and rebuild the brand, has increased the value of the Office trademarks by more than R1 billion.

HUMAN
CAPITAL
OUTCOMES
Human capital deployed by the Group benefitted from the increased investment in training and development, while the number of employees in Office decreased over the prior period.

SOCIAL
AND
RELATIONSHIP CAPITAL
OUTCOMES
Social and relationship capital deployed by the Group has increased, as evidenced by the Group’s strong stakeholder relationships, the growth in the account and loyalty customer base, the strengthening of relationships with suppliers, the growth in CSI investments and distributions to communities, and the improvement in the Group’s B-BBEE score.

NATURAL
CAPITAL
OUTCOMES
The rate of depletion of natural capital has increased in line with the growth in business activity. However, the depletion is at levels that the Group believes are acceptable.
EXTERNAL FACTORS IMPACTING VALUE CREATION
Several factors that are partially or wholly outside the control of the Group could have a significant impact on value creation, preservation or erosion. The external factors influencing the Group’s financial performance and our response to these factors are addressed in the relevant sections throughout the Integrated Report.
The impact of our business activities on the capitals is outlined below.

CAPITALS
KEY OUTCOMES
STAKEHOLDERS AND SDGs IMPACTED
REFERENCES
2024 | 2023 | |||
---|---|---|---|---|
Return on invested capital (ROIC): Weighted average cost of capital (WACC) | ![]() |
(times) | 1.7 | 2.0 |
Net debt to equity | ![]() |
(%) | 3.2 | 11.1 |
Diluted headline earnings per share down 6.5% | ![]() |
(cents) | 805.8 | 861.4 |
Period-end share price | ![]() |
(cents) | 9 328 | 5 660 |
Annual dividend per share down 6.4% | ![]() |
(cents) | 529 | 565 |
Dividend yield (based on weighted average share price) | ![]() |
(%) | 7.1 | 10.2 |
All medium-term financial targets met or exceeded | ![]() |
2024 | 2023 | |||
---|---|---|---|---|
Capital expenditure | ![]() |
(Rm) | 770 | 717 |
Growth in trading space | ![]() |
(%) | 1.2 | 1.1 |
Net number of stores opened/(closed) | ![]() |
12 | (1) | |
Increased e-commerce contribution to retail sales | ![]() |
(%) | 18 | 15 |
STAKEHOLDERS AND SDGs IMPACTED

New technology and processes implemented to enhance Truworths’ ability to deliver an omni‑channel experience to customers | ![]() |
Artificial intelligence applied in the new account conversion process | ![]() |
Enhanced online fulfilment processes result in shorter delivery lead times, lower costs and improved profitability of e‑commerce channel | ![]() |
Partial reversal of Office trademark impairments | ![]() |
STAKEHOLDERS AND SDGs IMPACTED

2024 | 2023 | ||||
---|---|---|---|---|---|
Salaries and benefits paid to employees increased | ![]() |
(Rbn) | 2.6 | 2.5 | |
Number of employees increased in Truworths | ![]() |
10 451 | 10 395 | ||
Number of employees decreased in Office | ![]() |
1 556 | 1 731 | ||
Maintained black employee representation in South Africa | ![]() |
(%) | 94 | 94 | |
High level of female representation | Truworths Office |
![]() ![]() |
(%) (%) |
76 61 |
75 62 |
Trained more people across the Group | ![]() |
13 038 | 12 588 | ||
Significant investment in skills development | ![]() |
(Rm) | 129 | 122 | |
Higher skills development spend per employee | ![]() |
(R’000) | 10.8 | 10.1 | |
Below the medium term target of 30% black representation on the Truworths International board | ![]() |
(%) | 23 | 25 | |
Achieved medium term target of 30% female representation on the Truworths International board | ![]() |
(%) | 31 | 33 | |
Below 2024 target for black representation at top management of 27.3% | ![]() |
(%) | 20.0 | 18.2 | |
Achieved 2024 target for female representation at top management of 27.3% | ![]() |
(%) | 30.0 | 27.3 |
STAKEHOLDERS AND SDGs IMPACTED

2024 | 2023 | ||||
---|---|---|---|---|---|
Truworths active account customer base increased | ![]() |
(m) | 2.9 | 2.8 | |
Truworths loyalty programme customer base increased | ![]() |
(m) | 20.9 | 18.9 | |
Net promoter score improved | Truworths | ![]() |
57 | 55 | |
Office | ![]() |
81 | 78 | ||
Increased CSI distributions | ![]() |
(Rm) | 11.3 | 4.9 | |
Increased CSI investments | ![]() |
(Rm) | 269 | 237 | |
Higher merchandise donations to socioeconomic and enterprise development beneficiaries | ![]() |
(Rm) | 44 | 41 | |
Improved Broad-Based Black Economic Empowerment (B‑BBEE) scorecard compliance | ![]() |
(Level) | 4 | 5 | |
Growing social media following – Facebook, | Truworths | ![]() |
(m) | 7.9 | 7.6 |
Instagram and TikTok | Office | ![]() |
(m) | 1.3 | 1.2 |
Significant corporate tax payments | ![]() |
(Rm) | 967 | 1 068 |
STAKEHOLDERS AND SDGs IMPACTED

2024 | 2023 | |||
---|---|---|---|---|
Total carbon emissions increased | ![]() |
(tCO2e) | 75 936 | 72 274 |
Store electricity carbon emissions decreased | ![]() |
(Wh per m2) | 15.5 | 15.7 |
Water consumption decreased | ![]() |
(Kl) | 154 459 | 166 120 |
Recycled plastic hangers decreased | ![]() |
(tonnes) | 74.1 | 84.6 |
Paper and stationery consumption decreased | ![]() |
(tonnes) | 208 | 283 |
Recycled cardboard cartons decreased due to focus on reuse | ![]() |
(tonnes) | 585 | 716 |
STAKEHOLDERS AND SDGs IMPACTED

ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
STAKEHOLDERS AND SDGs IMPACTED
REFERENCES
ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
Ongoing active management of the Group's financial capital base:
- Returned R2.2 billion to shareholders through dividend payments.
- Reinvestment of R770 million in capital infrastructure.
- Utilised revolving credit facility (Truworths R1.2 billion).
- Utilised bank overdraft facilities (Truworths R1.1 billion).
- Utilised green loan for new Truworths distribution centre (DC) construction (Truworths R268 million).
STAKEHOLDERS AND SDGs IMPACTED
- Financial capital is applied to sustain and grow our business, typically with positive impacts on the manufactured, human, intellectual, and social and relationship capitals, and negative impacts on natural capital.
- One of the core beliefs of the Group's Business Philosophy is that it will not buy growth in market share (ie higher sales and unit volumes) at the expense of profits. This results in a trade-off between market share and profitability, with the Group always preferring higher margins and profits over higher market share at lower profits.
- A key trade-off in the account management process relates to the Group's risk appetite (and consequential level of bad debt) versus profit. The high margins in Truworths would allow the Group to take on more credit risk with incremental profit, but it would generate higher net bad debt and expected credit loss allowance levels that may not be acceptable to shareholders.
REFERENCES
ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
- Capital expenditure of R745 million on stores, distribution centres and buildings.
- Continued consolidation of space and improving efficiencies through introducing new brands into existing stores and closing underperforming stores.
- Construction of new Truworths DC completed. Commenced the installation of the materials handling equipment in the DC.
- Accelerated new store opening and modernisation programme in Office.
- Further R28 million spent on backup power solutions for SA stores to mitigate impact of load shedding.
- Stores covering 92% of SA sales equipped with alternative power sources.
STAKEHOLDERS AND SDGs IMPACTED
- Ongoing investment in the Group's store and distribution infrastructure requires significant capital investment and has a negative environmental impact. The Group strives to minimise its environmental impact by building energy-efficient stores, and the new DC is certified to EDGE Advanced green building standards. Furthermore, our commitment to investing for growth will contribute positively to financial capital in the medium to long term.
ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
- Several credit scorecards developed or refined to improve predictive power in account management.
- Significantly increased digital engagement with customers across account acquisition, account management and collections.
- Truworths' online functionality enhanced to align with in-store services, including opening an account online.
- Continuous improvement of cybersecurity systems to mitigate cyber risks.
STAKEHOLDERS AND SDGs IMPACTED
- Ongoing investment in business processes and new systems is growing our intellectual capital, and indirectly benefitting our human and social and relationship capitals, but negatively impacting financial capital in the short term.
ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
- Diversity, equity and inclusion project initiated to create a culture where all employees feel a sense of belonging and feel included.
- Women empowerment project introduced to develop female leaders.
- Launched programme to develop and fast-track top talent from designated groups to prepare them for career progression.
- Focused on aligning the human resources processes of Office with those of Truworths, including migrating Office employees onto the same human resource and payroll system as Truworths.
STAKEHOLDERS AND SDGs IMPACTED
- Our commitment to the training and development of our employees reduces our financial capital but leads to increased human capital and intellectual capital. This will ensure that our employees are equipped to provide our customers with superior quality, aspirational fashion merchandise, and provide world-class customer service that will ultimately increase the value created for our shareholders.
ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
- Increased the number of CSI projects supported from 21 to 31.
- Funded electricity generators for cut-make-trim operators to support the viability of the local manufacturing sector.
- Continued focus on and regular communication with suppliers about B-BBEE compliance and progress.
- Implemented a Group human rights policy in line with national and international standards.
- Continued to donate merchandise to community organisations to create employment and generate funding while reducing waste to landfill.
- Engaged regulators on key matters, including National Credit Regulator, Department of Employment and Labour, Department of Trade, Industry and Competition and revenue authorities.
STAKEHOLDERS AND SDGs IMPACTED
- Through our commitment to socioeconomic, supplier and enterprise development, we are trading financial capital in the short term to boost social and relationship capital through the upliftment of communities and the development of our local supply chain.
- The tough consumer environment is impacting negatively on the credit score of new applicants, resulting in a reduction in the number of risk-approved applications. In order to grow the active account base, the Group is required to increase marketing spend and invest in the development of new credit products and strategies.
- In the current tough economic climate, our focus on containing costs through the negotiation of prices with suppliers and landlords, and by limiting the use of external service providers where work can be performed in-house, arguably weighs on our social and relationship capital in an effort to limit the reduction of our financial capital. This will, however, increase our human and intellectual capitals as in-house skills grow and develop.
ACTIONS TO ENHANCE OR MITIGATE OUTCOMES IN 2024
- All SA stores renovated during the period were fitted with energy-efficient lighting as well as electricity meters.
- Partnered with organisations that recycle or reuse damaged goods or convert fabrics into garments for resale.
- All suppliers required to commit to good environmental practices.
- Materials associated with merchandise are recycled or reused where possible, while the business continues to seek ways to limit packaging on merchandise.
- Measures implemented to decrease carbon emissions in the supply chain.
- Continued effort to reduce water consumption at all facilities and stores.
- All plastic bags made from at least 50% recycled materials.
STAKEHOLDERS AND SDGs IMPACTED
- We consume natural resources and fossil fuels in the production, packaging and transportation of our merchandise, which impacts negatively on natural capital in order to increase financial capital, and indirectly all the other capitals of value creation.
- Various environmental initiatives (installation of energy meters to track energy consumption, renewable energy at owned locations, LED lighting, water-savings initiatives, reducing and reusing packaging, plastics, paper and landfill) are aimed at reducing our impact on natural capital, often at a cost to financial capital, at least in the short term.