adminCLOTHING retailer Truworths’ turnover for October grew 19 percent following the introduction of the Cabs funded credit card in the same month Truworths launched a CABS-funded In-store Credit Card — the first of its kind in the country —for exclusive use in the Truworths/Topics Stores in a bid to boost its revenue and improve its balance sheet liquidity.
The initial phase of the credit card would be limited to a funding of US$5 million with a few selected customers — 5-6000 — expected to participate in the scheme. The 36 months facility not only makes it affordable to get credit, but it will reduce the interest payable bill on the accounts.
CE Mr Temba Ndebele told the AGM yesterday that with the introduction of the credit line, there group expects further upside in terms in terms of sales.
It would result in improved purchasing power for customers, more affordable installments and improved cash flows for the business. However the growth of the in-store credit card will be influenced by liquidity in the economy.
Turnover in the first four months to October 13 was up 5,9 percent. The Earnings Before Interest Taxation Depreciation and Armotisation (EBITDA) margin was at 14,7 percent from 13,3 percent. — FinX.
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