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By
Reuters
Published
Feb 4, 2014
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South Africa's Foschini expands into Ghana, but waiting on Kenya

By
Reuters
Published
Feb 4, 2014

JOHANNESBURG, South Africa - South African clothing retailer Foschini Group is expanding its West African presence and has plans to enter Ghana with four stores by the end of 2014, its financial director said on Tuesday.

Foschini current collection | Source: Foschini - Source : Foschini

In 2013 Foschini broke into the region by opening two stores in Nigeria, Africa's most populous country, as part of a strategy to double its stores outside of South Africa over the next three years to about 200.

But plans to open shop in Kenya were placed on the back burner when the opportunity arose in Nigeria, financial director Ronnie Steyn told Reuters.

"East Africa we have had a look at but we are not moving there yet. We can't do everything at the same time," he said.

Struggling for growth at home, South African companies are looking to the continent for more sales as a nascent middle class starts to splurge on items previously seen as luxuries.

Consulting firm McKinsey estimates that by 2020 Africa's spending power will be $1.4 trillion, up from $860 billion in 2008.

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