OVERVIEW SUSTAINABILITY 2017 - TFG
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2017 SUSTAINABILITY OVERVIEW
CONTENTS
01
INTRODUCTION
02
OUR STRATEGY
About this report...............................................2 Our Strategy..........................................................7
About TFG............................................................3 In conversation with Brent Curry...................9
A word from our CEO......................................4 Sustainable development goals...................10
Performance highlights...................................5
03
SHARED VALUE & FOCUS AREAS
04
NON-FINANCIAL DATA
Local supply chain development.................12 Non-financial data...........................................31
Employee empowerment...............................17 Abbreviations....................................................32
Resource efficiency..........................................20
Socio-economic development....................23
Governance, ethics and accountability....26
TFG 2017 SUSTAINABILITY
CONTENTS |
SHARED VALUE NON-
INTRODUCTION OUR STRATEGY FINANCIAL DATA
& FOCUS AREAS
TFG 2017 SUSTAINABILITY
INTRODUCTION | 1
INTRODUCTION
ABOUT THIS
REPORT
This sustainability overview report provides insight www.tfglimited.co.za.
into TFG’s performance and prospects in relation
to environmental, social and governance (ESG) KING CODE OF CORPORATE GOVERNANCE:
issues. The report presents our perspective on King III Principles may be found at
what sustainability means for TFG operations www.tfglimited.co.za.
and includes information on the progress against
five strategic focus areas, namely: CARBON DISCLOSURE PROJECT (CDP):
TFG participates in the CDP climate change
• LOCAL SUPPLY CHAIN DEVELOPMENT report which provides further insight into our
carbon risk and management response. The CDP
• EMPLOYEE EMPOWERMENT website is www.cdp.net.
• RESOURCE EFFICIENCY CARBON FOOTPRINT REPORT:
TFG’s carbon footprint report may be found at
• SOCIO–ECONOMIC DEVELOPMENT
www.tfglimited.co.za.
• GOVERNANCE, ETHICS AND ACCOUNTABILITY KIMBERLEY PROCESS:
Where applicable, we include relevant Our jewellery division adheres to the
commentary from selected stakeholders. Kimberley Process, a global government,
industry and civil society initiative to stem the
TFG’s current sustainability strategy is applicable flow of conflict diamonds.
to all divisions, excluding TFG International and
TFG Africa. We will be extending our strategy to FTSE/JSE RESPONSIBLE INVESTMENT INDEX:
include TFG International and TFG Africa and plan TFG is listed on this index.
to include non-financial data for these operations
Although we make significant effort to ensure
in our sustainability reporting within the next 2–3
the validity and accuracy of information, the
years. TFG’s sustainability overview is part of our
non-financial data provided in this overview is
integrated reporting process and supplements the
not externally assured.
high-level information included in the TFG Integrated
Annual Report 2017. These reports may be found at This report contains certain forward-looking
www.tfglimited.co.za. statements. These statements are not guarantees
of operating, financial or other results which may
INTEGRATED ANNUAL REPORT: differ materially from what is expressed or implied
For an integrated overview of our performance, by such statements.
markets and operations, please refer to our Integrated
We would value your views and feedback on this
Annual Report which may be found at
report. Please email Nyarai Pfende, Head of TFG
www.tfglimited.co.za. Sustainability at NyaraiP@tfg.co.za.
FINANCIAL STATEMENTS:
For further details on our financial performance,
the TFG financial statements may be found at
TFG 2017 SUSTAINABILITY
INTRODUCTION | ABOUT THIS REPORT | 2
ABOUTTFG
TFG’s vision is to be the leading fashion lifestyle e-commerce channels. South Africa and Namibia
retailer in Africa whilst growing our international are TFG Africa’s most significant markets, with
footprint, by providing innovative, creative the United Kingdom , including Ireland, being the
products and by leveraging our portfolio of most significant market for TFG International.
diverse brands to differentiate our customer
offering. Our talented and engaged people Our product offering is sourced both locally and
will always be guided by our values, social offshore. A key differentiator is our in-house design
conscience and customer-centric mindset which and manufacturing facility, which coordinates
in turn enables our employees to implement our production through our own factories and various
strategies, deliver our products and services and independent cut, make and trim (CMT) factories.
thereby create value for our stakeholders.
TFG is a diverse group with a successful portfolio
of 22 leading fashion retail brands across various
lifestyle and merchandise categories. We are one
of the foremost independent chain-store groups
in South Africa, with the company established
in 1924 and listed on the Johannesburg Stock
Exchange (JSE) in the general retailers sector
since 1941.
Our retail brands offer clothing, jewellery,
cellphones, accessories, cosmetics, sporting and
outdoor apparel and equipment, homeware and
furniture from value to upper market segments.
The majority of our turnover is in the form of cash
sales to customers, with the balance being from
our own in-house credit offering. Currently, credit
is offered to our customers in South Africa as well
as in Namibia, Botswana, Lesotho and Swaziland.
In addition to retail turnover, revenue is also
generated from interest received on customers’
store cards and through various customer value-
added products.
TFG’s footprint comprises 3 328 outlets in
34 countries spanning five continents with
more than 23 400 employees. In addition, 10
of our brands offer goods for sale through our
TFG 2017 SUSTAINABILITY
INTRODUCTION | ABOUT TFG | 3
A WORD FROM OUR CEO
DOUGMURRAY
an expanding range of partners. Our growth, Sustainability develops competencies that are to supporting this growth through our efforts towards
increasing headcount and profitability contribute integral to our expansion, particularly in emerging greater inclusivity, accountability and environmental
measurably to the value we deliver to society. markets. Our efforts challenge us to learn from our responsibility.
But these impacts arise from business as usual. context and to translate this learning into internal
I am grateful for the sustainability efforts of many
To support our business, our shared value and capability, innovation and value. This is an important
individuals and teams across the group, as well
sustainability strategy must help us to look beyond theme for the TFG Retail Academy which was
as the continued guidance from our Social and
business as usual: to delivering value by doing launched this year.
Ethics Committee. I look forward to another year of
things differently, to rethinking our options and to
In the year ahead, we anticipate opening in excess collective effort in support of tangible and lasting
infusing our action with a deeper understanding of
of 150 new outlets in TFG Africa, as well as 110 TFG value for all our stakeholders.
partnership and change.
International outlets. In scaling our QR strategy to
Our strategy targets areas where positive societal meaningful levels, we will work with more partners Doug Murray
impact can grow in tandem with our business, in across a more integrated value chain. We are committed CEO
ever more innovative ways. In maintaining this tight
focus, I am pleased to report progress across all
our focus areas, and particularly in the area of local
supply chain development.
I am excited to be pioneering a quick response
(QR) strategy that prioritises the development of
local suppliers. This has led several TFG teams to
explore the concept of shared value and a more
inclusive approach to growth. The completion of
our manufacturing facility in Caledon is a source
I am pleased to introduce TFG’s fifth sustainability of pride for TFG and the many partners that have
overview report, reflecting on our collective made it possible. We increased the units delivered
efforts to address societal concerns that impact on QR by 26% from last year, significantly impacting
our ability to deliver value to our stakeholders. our business, the Caledon community and other
The broader context of our efforts remains local suppliers. A new three-year textile cluster, in
characterised by uncertainty in both the domestic partnership with the Department of Trade and
and global economy. While highlighting the Industry, will help us to deliver on our commitment
resilience we’ve built through diversifying and a to extend QR and shared value thinking further up
conservative management approach, uncertainty the apparel supply chain, affecting mill, converters,
cannot become an excuse for a short-sighted dye and print operations.
focus on shareholder returns. On the contrary,
uncertainty and increasing complexity require an In extending our impact, we are cognisant of the
approach to society that supports our business growing importance of environmental, social and
more directly, that it is more focused and effective governance (ESG) standards. We have extended
than ever before. our ESG audits on key suppliers across the globe,
TFG is growing. We sell more merchandise, through a while mentoring local suppliers in a range of issues
greater number of stores, across a wider geographic from lean manufacturing to workers’ rights and
footprint. We employ more people and engage governance.
TFG 2017 SUSTAINABILITY
INTRODUCTION | A WORD FROM OUR CEO DOUG MURRAY 4
PERFORMANCEHIGHLIGHTS
STRATEGIC FOCUS AREAS
LOCAL SUPPLY CHAIN DEVELOPMENT
R50 OVER R2 MILLION
EMPLOYEE
EMPOWERMENT
206
OVER
CAPEX INVESTMENT TO SUPPORT STRATEGIC NEW OUTLETS OPENED IN TFG AFRICA
TFG MANUFACTURING FACILITIES
MILLION R9.1 MILLION
689
NEW JOBS
CAPEX INVESTMENT FOR TFG MANUFACTURING CREATED IN
SPENT ON CONSTRUCTING QR
M A N U FA C T U R I N G FA C I L I T Y I N CA L E D O N
UNDER THE PRODUCTION INCENTIVE PROGRAMME TFG AFRICA
R8 900 000
446
PRESTIGE CLOTHING EMPLOYMENT EMPLOYMENT EQUITY
93%
& 65% FEMALE
REPRESENTATION
INVESTED IN TFG MANUFACTURING IN SOUTH AFRICAN
TRAINING, INCLUDING DEVELOPMENT OPERATIONS
AND LEAN CONSULTING
UNEMPLOYED YOUTH
INCREASED QR UNITS TO 2.4
MILLION, REPRESENTING 43% OF
INCREASED HEAD COUNT BY 211
OVER THE PAST 2 YEARS LEARNERSHIP R2 726 600
IN BURSARIES AWARDED TO STUDENTS
TOTAL TFG MANUFACTURED UNITS CREATING 150 JOBS FOR UNEMPLOYED
YOUNG SOUTH AFRICANS DURING FY2018 OPPORTUNITIES WHO CAME IN PIPELINE POSITIONS
A GRADE
TFG MANUFACTURING FACILITIES ACHIEVED
RESOURCE EFFICIENCY
TFG IN PARTNERSHIP WITH IDC AWARDED
OVER THE LAST 3 YEARS CARBON
EMISSIONS INTENSITIES REDUCED PER:
EMPLOYEE BY EBITDA BY
TEXTILE CLUSTER INTERNAL SCORECARD 5.O%
5.0% 12.7%
PERFORMANCE
SQUARE METRE
TO ENHANCE IN CUSTOMER BURSARIES (INCLUDING OUTLETS) BY
STATUS AWARDED
LOCAL FABRIC CONVERSION
AND PRINTING 7.4%
TFG 2017 SUSTAINABILITY
INTRODUCTION | PERFORMANCE HIGHLIGHTS | 5
PERFORMANCE
HIGHLIGHTS STRATEGIC FOCUS AREAS
SOCIO-ECONOMIC GOVERNANCE, ETHICS &
DEVELOPMENT ACCOUNTABILITY
BBBEE SCORE 5 PTS SOCIAL & ETHICS COMMITTEE’S
INCREASED FOCUS ON ETHICS,
400 000+
TRUE INVESTMENT OF TFG CONTRIBUTIONS ADDED VALUE MONITORING AND
REPORTING ON OUR SHARED VALUE
SUSTAINABILITY STRATEGY
INDIVIDUALS ARE BENEFITING
PROGRESSED FURTHER WITH UNGC
47 BENEFICIARY ORGANISATIONS
PRINCIPLES IMPLEMENTATION
40 000
B L A N K ET S PR O D U C ED ENTRENCHING THE WHISTLE
F O R D IS A S T ER R EL IEF BLOWERS’ LINE WITH ON-GOING
EMPLOYEE AWARENESS
ASSISTED SPONSORED AND PACKED OVER PROGRAMMES
18 000 203 000
VICTIMS
OF FIRES STOP
HUNGER MEALS
CONTINUED ENHANCEMENTS OF
THE SUPPLIER TAKE-ON PROCESS
EMPLOYEE EXPANDED INTERNATIONAL
DONATIONS SUPPLIER SOCIETAL AUDITS
LISTED ON FTSE/JSE
R350 000
RESPONSIBLE INVESTMENT INDEX
WINTER DRIVE COLLECTIONS
INCLUDED IN VIGEO EIRIS
EMERGING MARKET 70 RANKING
FEDISA BURSARY
STUDENTS INCREASED FROM 5TO 7
TFG 2017 SUSTAINABILITY
INTRODUCTION | PERFORMANCE HIGHLIGHTS | 6
SHARED VALUE NON -
INTRODUCTION OUR STRATEGY
& FOCUS AREAS FINANCIAL DATA
TFG 2017 SUSTAINABILITY
OUR STRATEGY | 7
OURSTRATEGYTFG HOW OUR SUSTAINABILITY STRATEGY SUPPORTS OUR BUSINESS STRATEGY
OUR STRATEGY
We will promote We will build trust with
transparency and customers & other
accountability, stakeholders by delivering
encouraging ethical measurable progress on
practices across our social and environmental
value chain challenges
We continue to position our strategy in the shared
Refer to pages 26 – 29 Refer to pages 5 – 8
value space, with a strong focus on local supply chain
development. The approach has helped to promote
sustainability thinking within the operating divisions by
making the link between tangible societal and financial
outcomes more overt.
We will deliver superior We will enhance customer
Four additional focus areas comprise the strategic customer experiences relationships through the
across our retail brands intelligent use of data
framework for the group, namely:
We will respond to
Our training programmes
• Employee empowerment societal challenges that CUSTOMER
will develop employee
impact our operating
• Resource efficiency environment by
potential, delivering a
• Socio-economic development capable & competent
• Governance, ethics and accountability
innovating to create
shared value BUSINESS STRATEGY pipeline of talent
Refer to pages 17 – 18
Refer to pages 5 – 8
GROWTH
The links between our business strategy and WE ARE LEADERSHIP
sustainability strategy are highlighted in the diagram. We will be the COMMITTED TO
leading lifestyle ACHIEVING OUR We are committed
These linkages continue to be developed as we progress to embedding a
retailer in Africa 2022 TARGET
the elements of our strategy. whilst growing performance based
our international culture that will
footprint ensure we attract,
During the reporting period, our implementation efforts We will optimise the flow retain and develop
of goods from source to By empowering women
focused on clarifying specific commitments for each of We will support local the best talent in and black South Africans
customer to enhance the
communities to ensure the industry we will enhance diversity,
the focus areas, and on improving our metrics and data customer experience
support transformation
our business has a greater
collation systems to enable more effective tracking of chance of success in the efforts and reduce the
PROFIT
progress. In defining our commitments, work teams for long term risks of gaps
in our strategy
each of the focus areas undertook a detailed analysis of Refer to pages 23 – 25
We will enhance Return on Our brands will optimise their Refer to pages 17 – 18
input and output measures, outcomes and impacts for Capital Employed (ROCE) by supply chain capability, including
each of the focus areas. We also engaged with senior optimising profitability and their suppliers, buying processors
capital management and Quick Response
managers and employees on the key elements of our
sustainability strategy.
Sustainability efforts continue to be coordinated through
a quarterly meeting of focus area heads, facilitated
by the Head of Sustainability and chaired by the
We will reduce waste and
resource use by applying
SUSTAINABILITY We will develop and
support our local supplier,
Chief Information Officer (and Director responsible for lean principles at TFG
manufacturing, mentoring
STRATEGY manufacturing and
design capabilities to
sustainability and climate change). The Social and Ethics local suppliers and changing enhance quality, flexibility
Committee has oversight of the strategy and reports to behaviour at head office and and speed of delivery
distribution centres
the Supervisory Board. Refer to pages 12 – 16
Refer to pages 20 – 22
Our sustainability management structure is presented
in the diagram on page 29.
TFG 2017 SUSTAINABILITY
OUR STRATEGY | 8IN CONVERSATION WITH
BRENTCURRY TFG CHIEF INFORMATION OFFICER AND DIRECTOR RESPONSIBLE FOR
SUSTAINABILITY & CLIMATE CHANGE
DO YOU THINK TFG HAS A LEARNING efforts. In general, our approach is to embed questions. Responding to multiple surveys takes
MINDSET? TFG’s ethics and the need for ongoing dialogue a fair amount of time and we’re not yet seeing
on sustainability. Beyond that, we would expect an effective drive to consolidate the indicators
I do. Learning takes various forms at TFG, from a
the different operations to address those issues expected of us. ESG surveys still tend to focus on the
focus on executive education to prototyping the
most material to their markets and stakeholders. smaller picture – the details. While this is important,
Store of the Future or engaging actively in the
it can obscure the more visionary perspective
dti’s Competitiveness Improvement Clusters. We
required by long term sustainability thinking. Our
are seldom the first to jump onto a bandwagon, WHAT CHALLENGES ARE YOU WORKING
WITH AT THE MOMENT? primary approach remains on the JSE-FTSE and the
but we are steadfast learners and we put our
United Nations Global Compact and we respond to
learning into practice. It’s a conservative approach All businesses face a squeeze on resources and specific investor queries as needed. We continue to
which has yielded some evidently good results a simultaneous expansion of pressing issues. In make more information available on our website.
in a turbulent operating environment. In some the sustainability arena, this expresses as a steady
respect, sustainability and learning are integral increase in investor queries, global campaigns
to each other. Learning requires us to develop WHAT CAN WE EXPECT FROM TFG
and issue-specific initiatives. Our response has
and transform continually in response to context; SUSTAINABILITY MOVING FORWARD?
been to focus consistently on the drive to core
sustainability is essentially an ongoing conversation business integration underpinned by clear ethics Our focus is on learning and internal-integration
about our business, its stakeholders and the future. and values. We keep coming back to that because and I think this is where it will remain for the next
It is hard to imagine one without the other. Part of it is fundamental to taking the appropriate action, few years. While we share some positive stories,
our challenge is to pull all these strands together no matter what the issue. South Africa is going we don’t promote a broader sustainability message
into a coherent sense of who we are. through some intense governance challenges at externally for various reasons. We are in a learning
TFG IS CONTINUING TO IMPLEMENT THE
SHARED VALUE STRATEGY THAT WAS ADOPTED this point, with the role of business and the state phase. Engagements with external stakeholder
IN 2015. DO YOU FEEL THIS WAS THE RIGHT TFG HAS ACQUIRED OPERATIONS IN THE UK being questioned. This makes it so important for groups are multiple and typically issue-specific:
MOVE FOR YOU? AND EXPANDED OPERATIONS IN SA. WHAT us to keep that overarching ethical commitment about training local suppliers in lean manufacturing,
DOES THIS GEOGRAPHICAL STRETCH MEAN while undertaking very practical steps to address engaging with mills on locally-produced textiles,
We’ve worked on sustainability issues fairly actively
FOR YOUR SUSTAINABILITY EFFORTS? a number of highly specific sustainability issues – or reducing energy consumption at stores. Some
for the past seven years, always with a view to
integrating this perspective into our core thinking. Sustainability issues are different depending on from energy efficiency to human rights and social issues are specific to retail brands, for example,
Our shift to shared value recognised the pivotal geographical and political context; and certainly investments. In many respects, the challenge is to Sterns and American Swiss ensure their diamonds
contribution of our local supply chain efforts. expectations of stakeholders will vary across see the big picture and the small details at the meet the Kimberley Process sourcing requirements.
These efforts really drive integrated thinking by markets. Part of the sustainability challenge is to same time. By pulling our efforts together on all these details,
bringing together supply chain optimisation, lean stay engaged and responsive to what matters we are seeking to make our bigger picture thinking
ARE YOU SEEING ANY SIGNIFICANT more focused and congruent. Although it is not
manufacturing and increasing local employment. in the different areas. In South Africa, the
DEVELOPMENTS IN THE ENVIRONMENTAL, packaged as public relations, we see our ability
These in turn deliver tangible social and financial development of a more inclusive supply chain is an
SOCIAL AND GOVERNANCE (ESG) AREA?
results for our business. Although it has been useful imperative, with policymakers and local suppliers to engage and learn from stakeholders as the
to focus our strategy, I am not sure the concept of being key stakeholders in this respect. In the UK, Communicating our performance through various most important sustainability message we can
“shared value” is sufficiently understood to warrant its we are seeing greater prominence of product ESG indicators remains our primary interface communicate right now. These include partners in
use more broadly. The important thing is the process related issues with the companies such as H&M with investors. We appreciate the consolidation government, non-governmental organisations, and
and depth of the integration of this kind of thinking and M&S promoting collections made of recycled that took place through the JSE-FTSE Russell the supply chain such as local CMTs (cut-make-
into our business, which is an ongoing process and materials. We acquired Phase Eight in 2015 and partnership in 2015, however many investors trim), designers and mills further upstream in the
requires us to be open to learning all the time. Whistles in 2016, so we are still integrating our still tend to have their own set of ESG-related textile industry.
TFG 2017 SUSTAINABILITY
OUR STRATEGY | IN CONVERSATION WITH BRENT CURRY 9TFG
ALIGNING WITH HOW OUR SUSTAINABILITY INITIATIVES ALIGN WITH
GLOBAL GOALS THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
The Sustainable Development Goals (SDGs) were
agreed by 193 Member States of the United Nations in
September 2015.
Seventeen goals and over 160 targets were agreed
upon, and cover a broad range of sustainable
development issues, including issues such as ending Women make up 27% of our TFG Manufacturing’s new Caledon
Our mantra of ‘Educate to Empower (E2E) Supervisory Board, 50% of our facility opened in 2017, employing
poverty and hunger, improving health and education, ensures that initiatives are implemented to senior management and 70% more than 300 local workers and
gender equality, inequality, productive employment and train and upskill people in sewing, teaching of our employees overall. planning to approximately double
and retail management. output within 24 months.
combating climate change. 92 % of ou r e m p l oye e s at
TFG Manufacturing Caledon Through TFG Design, we support
facility are local women. and promote local design capability.
Governments, businesses and civil society organisations Skills are boosted by practical experience
both through our network of partnerships
are working together across the world to meet the and through our own stores and factories. Through ongoing support of the
targets within their spheres of influence. local Competitive Improvement
Clusters, we are enhancing local
TOWN OF
output.
CALEDON
THE SEW
B&M ANALYSTS
GOOD PROJECT
DEPT OF TRADE
THE FEEL
AND INDUSTRY
GOOD PROJECT
INDUSTRIAL
NELSON MANDELA
DEVELOPMENT
CHILDREN’S FUND
CORPORATION
SUSTAINABLE
CONSUMPTION
& PRODUCTION
UGU CLOTHING SEDEX
ENGINEERING BANK (IN PLACE BY OCTOBER 2017)
SOLUTIONS R2.8 million in bursaries was
awarded to students who
entered equity employee
ASIA INSPECTION and emerging leader pipeline
A growing number of TFG Merchandise returns and
rejects are re-purposed in
(IN PLACE BY SEPTEMBER 2017) positions.
outlets are being monitored
online 24/7 for their energy support of those in need.
conservation. On-going audits will ensure that our
international suppliers adhere to
TFG’s current sustainability initiatives support at least mandatory environmental, social
SUSTAINABLE and governance policies.
six of the SDGs, as shown in the diagram on the right. In CONSUMPTION
& PRODUCTION
bringing about these outcomes, we recognise the efforts DON’T WASTE
of numerous partners, some of whom have guided our SERVICES
thinking and efforts for several years.
Our intergrated waste management
solution reduces our waste to landfill.
Partnership links
TFG 2017 SUSTAINABILITY
OUR STRATEGY | SUSTAINABLE DEVELOPMENT GOALS 10INTRODUCTION
OUR STRATEGY
SHARED VALUE &
FOCUSAREAS
& FOCUS AREAS
SHARED VALUE
FINANCIAL DATA
NON -
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | 11LOCAL SUPPLY CHAIN
DEVELOPMENT
WHAT’S IMPORTANT • Investment of R8.9m in TFG Manufacturing WHY LOCAL SUPPLY CHAIN DEVELOPMENT • Growing the capability and capacity of
training, including development and lean
consulting. Our investment is done in
IS SO IMPORTANT TFG Manufacturing:
• Develop and enhance a local design capability
collaboration with DTI, IDC and SETA’s
and capacity A key TFG strategic business objective is to We have built two world-class QR
• Investment of R9.1m in capex for TFG
• Growing the capability and capacity of our Manufacturing under the Production Incentive optimise its supply chain capabilities which manufacturing facilities which employ
manufacturing programme will allow it to offer customers a wider range over 1000 employees
• Continue our engagement and support in • Increased QR units from 1.9m to 2.4m, an of in-demand products and a compelling
competitiveness improvement clusters We have, through two competitiveness
increase of 26% on last year rewards programme.
• Develop our local fabric conversion and supply clusters, had 6 years of upskilling our
(e.g. mills, finishing houses) • QR units represent 43% of total TFG local manufacturers to better manage
Manufactured units, a growth of 26% on last
• Learning and mentoring and partnership our lean process requirements for QR
year The competitive imperative within our local
activities in respect of the supply chain (e.g. manufacture. This also has included a
• In partnership with IDC, TFG was awarded a supply chain, lies in the need to reduce our
enterprise and supplier development) range of support measures over this
3 year textile cluster to further enhance local lead times, improve efficiencies and reduce period
fabric conversion and printing waste, which enables us to increase our
OVERALL GOAL • To scale up QR, local fabric conversion and percentage of orders on a quick response • TFG Manufacturing focuses heavily
printing is essential. TFG Manufacturing
has successfully tested new conversion and
timeline resulting in an enhanced rate of sale on skills upgrading at all levels within
• The upliftment of local communities through printing capability and capacity, achieving and a reduced markdown. our local supply chain and our partners
the development of our local supply chain close to 1.5m meters of locally converted fabric and this has ensured that we have
• Prestige Clothing is creating 150 jobs for Our shared value commitment allows us to stayed technologically abreast in both
KEY OUTCOMES currently unemployed young South Africans information technology systems and
prioritise local supply chain development and
• TFG Manufacturing facilities achieved another
sewing machine technologies
enable us to focus on creating shared value
• Growth of local design capability and capacity A grade internal scorecard performance status
in both financial and social terms within our
• QR scalability and sustainability with
• Growth of local manufacturers, fabric converters local supply chain operations. By achieving ever improving timeliness required an
and suppliers (e.g. printers) this we aim to increase disposable household
LOOKING AHEAD increase in our capacity and capability
• Development of partnership-based relationships incomes by uplifting local communities in the dyeing,printing and finishing of
(e.g. clusters)
• Continued focus on local supply chain through job creation, job retention, training fabrics
• Productivity improvements which will positively developement in support of our shared value and upskilling.
impact on speed, price and on the overall value strategy • We have just launched a new
offering to our trading divisions • Continued development of strategic “Competitiveness Improvement Cluster”
relationships with local fabric converters and
HOW IS TFG APPROACHING THE
HEADLINES mills
CHALLENGE?
• Projecting increased growth of an additional
1m units in TFG Manufacturing for the financial
• Construction of our new TFG quick response (QR) TFG has and continues to optimise its local
year 2018
manufacturing facility in Caledon completed supply chain capability with a number of
• Continue to increase the QR capacity and development initiatives:
(This facility has the capacity to produce 3m capability to levels required by our retail
garments per annum on a single shift when fully brands
• Enhancing local design capability and
staffed. Currently it employs 300 of its 500
• Develop as an efficient KZN regional supply capacity through a number of initiatives
complete complement) chain as we have in the Western Cape to
gives TFG Design an improved ability in
reduce costs through transport rationalisation,
the movement of product and raw materials designing and reacting to in demand
• Investment of over R2.0m in capex to support
as well as take advantage of the substantial in-season sales
expansion of strategic TFG Manufacturing facilities
investment our partners have made in their
to support our supplier development objectives
manufacturing facilities in KZN
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | LOCAL SUPPLY CHAIN DEVELOPMENT | 12LOCAL SUPPLY CHAIN
DEVELOPMENT
which focuses on the critical aspect required given its size, is the best in class in the National to days and weeks, in order to maintain the our menu of fabrics available for local
to critically scale QR. The essential local trim Clothing Industry. This world-class facility, both critical paths required. While undertaking this conversion and this will increase the
and fabric conversion process has required in layout and process, has attained efficiency pioneering work in creating a scalable and effectiveness of our QR offering to TFG
us to expand, develop and improve our levels resulting in price points that compare efficient local QR capability, some mistakes retail brands
identified strategic value chain partners favourably with its Chinese competitors in the are unavoidable and these at times impact on
Far East. Savings are also made in every aspect our reliability, our KPI’s which can ultimately • Enhanced internal capacity to accommodate
• TFG’s developmental approach applies of the business, including its insistence of use disappoint our retail customer. an additional 25% growth in QR units
across the full value chain–linking fabric mills, of green energy and energy saving technology.
manufacturers, auxiliary suppliers, Prestige The local supply chain was impacted late last • As our turnover grows, the percentage QR
Clothing, TFG Design and all of TFG’s retail A new 3 year textile cluster has been awarded year with the Rotex fire, the JMV strike and of this turnover will remain at around 50%.
brands-in creating sustainable, social and to TFG, in partnership with the DTI. This textile the flooding which took place along the KZN It should be noted that of the 4 million
financial value cluster supports the apparel supply chain coast. While the TFG teams have managed units produced in 2013, only 3% were on
requirements for retail, namely the mill, the the resulting consequences relatively well, this QR. In FY 2017, of the 6 million units of
• Learning, mentoring and partnership converter, the dyer, the printer and the factory. did impact our scorecard. We have identified garments delivered, 43% were on QR.
activities as well as specific strategic support The establishment of this cluster will result in an processes that will assist in managing this type This is a remarkable achievement not only
will continue as our pioneering efforts in even greater range of fabrics being converted of risk in the future and we are well underway within the context of TFG, but also within
developing a substantial local QR capability locally. to complete our restructuring with regard to manufacturing apparel chains nationally.
our planning and pre-production areas within
WHAT WAS ACHIEVED IN THE REPORTING In addition, significant capital is being provided the next few months. This will allow us again to
YEAR? by TFG to specific supplier development have a greater QR capability and to once again
opportunities with identified manufacturers in achieve our high levels of: on time, in full, quality
DURING THE YEAR UNDER REVIEW: KZN. A large proportion of our fabric is locally and delivery conformance.
sourced from the KZN region. It has, therefore,
One of our biggest achievements has been the
become necessary to increase our value add WHAT SHOULD WE EXPECT IN THE NEXT YEAR
positive recognition of the value of local suppliers.
by expanding our capability in this region to OR TWO?
Subsequently our retail brands have increased
include fabric conversion, trim conversion,
their proportion of QR and accordingly benefit
printing and assembly. The outlook ahead shows a continued focus on
from an improved sales performance.
local supply chain development in support of
Both Prestige Clothing facilities – Maitland and our shared value strategy:
We have made significant increases in the volume
Caledon – achieved another A grade internal
of our QR. Total garments manufactured on this
scorecard performance status. • Further strategic development and growth
timeline increased from FY 2016 to FY 2017 by
of key manufacturing facilities to achieve
26%. This increase in QR units is supported by the
WHAT WERE THE DISAPPOINTMENTS? QR. These facilities will form part of regional
local conversion of 1.5m meters of fabric within
supply chains which, in turn, will improve
the required QR timeline which has allowed a far
The challenges in running two processes, both lead times, reduce costs and the impact on
greater ability to react to in-season sales.
long lead time and QR within the same supply our environment
chain, has created pressure on our available
In order to support the additional QR capacity,
resources in the TFG Design, Manufacturing and • Increasing the capability of both Prestige
the new TFG quick response (QR) Prestige
Prestige Clothing facilities. Clothing facilities. The Maitland facility will
Clothing manufacturing facility in Caledon was
grow to more than 600 employees whilst
opened in January 2017. This facility has been
Our planning systems and processes are the Caledon facility which is currently at
equipped with the latest globally advanced
being redesigned and improved to minimise 300, will grow to 500 employees
sewing machine equipment and currently the ratio
bottlenecks and delays. Many of our processes
of its employees which have attained a national
have to be done in minutes and hours, as opposed • The textile cluster will further enhance
qualification as opposed to those who have not,
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | LOCAL SUPPLY CHAIN DEVELOPMENT | 13LOCAL SUPPLY CHAIN
DEVELOPMENT
PRESTIGE CLOTHING - CALEDON
CASE STUDY:
GROWING JOBS, PRODUCTIVITY & LOCAL
PRIDE: A CALEDON SUCCESS STORY
In 2008, Graham Choice, the CEO of Prestige and improved for clothing manufacture at
Clothing cc., decided to establish a new great expense to Prestige Clothing. In this
factory in addition to their Maitland plant. old community hall, primarily used for town
It was hoped that this factory would assist bazaars, a humble factory of 15 employees
in satisfying their TFG customers’ ever started delivering their first orders
increasing need for a scalable, sustainable, in late 2008.
reliable local manufacturing capacity that
offered enhanced value. As local Fast Fashion and QR capabilities were
explored and tested by TFG over the next
The reason for choosing Caledon as a location five years (TFG acquired Prestige Clothing in
was threefold: not only is it designated as a February 2012), this expansion into Caledon
Non-Metro B area, which allowed, due to its has proved to be strategically beneficial.
green fields status, for a slightly lower wage
Caledon, as well as its surrounding rural
rate; but it is also a quick 90-minute drive from
towns, has provided a large catchment area of
Cape Town on a national road. This would
unskilled labour for Prestige Clothing to draw
allow the location to not negatively impact
from and expand on. The challenge of the lack
Prestige Clothing’s ability to deliver on its
of skilled apparel manufacturing employees
new and developing Quick Response (QR)
was overcome by effective recruitment, and
production timelines. Thirdly, it gave them
then the extensive training of the unemployed
the value added benefit to provide substantial
from within the surrounding communities.
development and skills upgrading, educating
and empowering the unemployed as well as The establishment of an on-site training
creating meaningful employment in this rural facility which has attained a commendable
area .This has subsequently ensured a mutually history of providing excellent credit bearing
beneficial relationship between Prestige training and skills upgrading, was essential
Clothing and the local community in and to achieve its objective KPI’s. As a result,
around Caledon, which has grown in strength it has ensured that almost all of its current
since its inception. 300 workforce have attained a National
Qualification from the Department of Higher
As part of the engagement process, Graham Education. It’s with a feeling of immense
involved the TWK town council to assist pride that in this regard Caledon is arguably
in finding a suitable location in Caledon the “best-in-class” for its size nationally!
for the plant. This proved to be a huge
challenge, initially due to the lack of economic The above has provided Prestige Clothing
development in this area where agriculture is with the ability of creating a world-class
the primary industry. A building was eventually workforce, which could easily integrate into
secured, and due to the impoverishment of TFG’s newly developed and pioneered QR
the town and its council, had to be renovated methodology and processes. Providing QR
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | LOCAL SUPPLY CHAIN DEVELOPMENT | 14LOCAL SUPPLY CHAIN
DEVELOPMENT
PRESTIGE CLOTHING – CALEDON
capability at scale is absolutely unique within the South growing plant. This has now been resolved by appointing
African Clothing Industry. suitably qualified managers from Cape Town to the
Young, dynamic, previously unemployed South Africans TWK and Overberg municipal areas. Today the plant
have been successfully developed into a highly motivated employs 300 people achieving an average efficiency of
and skilled workforce, well-versed in operating within 65%. The 10 lines now produce 1.2 million units per year.
the challenging QR production timelines. As a result they Strategies ensuring further aggressive growth have been
have become accustomed to change due to their ever- implemented with the intent of growing employment
changing environment brought about by continuous to 500 employees over the next 3 years, and doubling
improvement requiring the implementation of newly output to 2.4 million units annually. Multi–skilling,
developed processes, state of the art machinery and training, the roll out of new technology and enhanced
enhancing plant layouts. This remains a journey and not customer focus remain top priorities to meet the ever–
“an event” and as such is constantly being measured changing requirements of our TFG brand retailers.
to further improve efficiencies and through–put time.
In the factory itself, we provide a small free meal to every
employee daily and a monthly hamper of basics that they
The establishment of Prestige Clothing (Caledon) has
would require at work at no charge. We have invested
substantially reduced unemployment and assisted in the
in a clinic and a social worker which addresses some of
economic development of the TWK area. The factory has
the critical socio–economic needs. As the plant draws a
grown from strength to strength, initially from one small
sizable number of its employees from the surrounding
manufacturing line in 2008 to 3 effective lines totalling 105
towns and due to the lack of public transport in the region,
employees at the time of TFG’s acquisition in 2012. These 3
TFG transport, which is subsidised, has been provided to
lines produced 17 000 men’s shirts and 12 000 other assorted
assist. Prestige Clothing has fully integrated itself into
apparel items. The factory gained new momentum with new
the community with a number of different CSI projects.
senior management in 2013, and this improved both the
There are a number of initiatives that support the local
efficiency and capacity of the plant. The management has
crèches, homes for the aged, schools and community
worked closely with the TWK town council, B&M Analysts
centres-TFG can be proud of its successes in this regard.
and the SETA-accredited training providers to recruit and
train new employees to aggressively grow the factory. In addition to the CSI initiatives in place, the impact of
the employment offered by the plant extends beyond
In 2014, the TFG Board approved the purchase of a sizable
the employee to the greater community, as each
piece of land in Caledon, with the intention of building a
employee supports 4–5 others in and around their homes.
new modern plant. In 2015, the original building with two
Their support has now moved to include some of the
additional buildings that had been rented for the then
outlying towns like Bot River, Grenadendal and Greyton.
growing factory, had reached their maximum capacity.
Construction started in January 2016, and today a world-
TFG is extremely proud of what this small team at Prestige
class apparel manufacturing facility has been built that
Clothing (Caledon) has achieved so far, consistently
can compete globally. The factory which could staff from
punching well above their weight class.
500 – 1000 employees has the latest in new technology
and globally competitive machinery. Rain water harvesting Clinton Clark, the Head of Operations for Prestige Clothing
is utilised and solar panels provide one-third of the plant’s believes their successes are largely due to ordinary
energy requirements. With modern boilers, compressors people, working effectively in a lean team environment
and all the sewing machinery being energy and air efficient, and embracing change which has resulted in their
Prestige Clothing’s energy requirements have been extraordinary achievements so far.
radically reduced as well as its carbon emissions footprint.
From all of us at TFG.....
Prestige Clothing (Caledon) lacked experienced, capable well done Team Caledon!
supervisory and middle management to manage this
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | LOCAL SUPPLY CHAIN DEVELOPMENT | 15IN CONVERSATION WITH
PETERADAMS HEAD SUPPLIER RELATIONSHIPS
& THE LOCAL SUPPLY CHAIN DEVELOPMENT SHARED VALUE FOCUS AREA
effective world-class manufacturers. The lack of hold the undyed greige for the next season after TFG specifically resourced 3 “competitiveness”
investment in new globally competitive machinery testing the next winner–this all results in far better improvement clusters. This provided TFG with
as well as the lack of skills at every level within the KPI’s and reduced mark down. engineering support, skills development, financial
organisations from senior management, technical assistance as well as the sharing of resources with
This partnership also gives Exact the ability to key strategic factories and mills within its supply
skills and operator level is a major challenge.
cleverly engineer and design its own product. It chain. It has been our experience that where a
TFG does not condone the use of non compliant gives them the opportunity to offer better value healthy, mutually beneficial relationship exists,
manufacturers within the scope of the national for money / design to their customers. retention is not a challenge.
bargaining council. The few large compliant
A 54% unit growth for the 2018 season on the WHY DO YOU CONSIDER THE DEVELOPMENT
manufacturers in South Africa (including BLNS)
previous season for TFG Manufactured units OF PARTNERSHIP-BASED RELATIONSHIPS
are insufficient to meet the capacity requirements
(based on QR successes and the above mentioned IMPORTANT?
and product capabilities for our retailers.
factors) are an indication of just how critical TFG
HOW HAS THE INCREASED GROWTH IN TFG Manufacturing are to Exact’s strategic future and As we pioneer a TFG (and South African) QR
MANUFACTURED QUICK RESPONSE (QR) success. model, where we have no textbooks to consult or
ASSISTED WITH THE TFG RETAIL BRANDS? best practice clothing and textile firms to visit, we
Exact’s male gender divisions are now starting constantly have to learn, develop and implement
Exact: to leverage off the same benefits that have been new processes. When considering that an order has
experienced with the Ladies and Girls / TFG to be processed from concept to hanging in a store
TFG Manufacturing supplies approximately 40%
Manufacturing relationship, which in turn will in 56 days or less, decision and problem solving
HOW SUCCESSFUL ARE YOU WITH UPLIFTING of Exact’s ladies and girl’s divisions merchandise
deliver a better customer experience and more need to occur in minutes and hours as opposed
LOCAL COMMUNITIES THROUGH THE and was a significant contributor to its ladies
profitability. to days and weeks. We are therefore constantly
DEVELOPMENT OF YOUR LOCAL SUPPLY CHAIN? wear and girls sales growth of 26.2% and 27.5%
respectively for the 2016 season. This performance HOW DO YOU SOURCE, DEVELOP AND RETAIN developing, learning and implementing and, then,
TFG can be proud of its successes in this regard. was outstanding and can be widely attributed to YOUR LOCAL MANUFACTURERS? learning again. As QR scales to meaningful levels
As the Prestige Clothing (Caledon) case study their relationship with TFG Manufacturing. (as required by TFG retail brands), the development
will show, we provide employment in both metro Sourcing becomes more challenging when trying of partnership-based relationships within our
and non-metro areas nationally and in most of By holding greige in key fabrications for QR, to identify compliant manufacturers (CMT’s) with supply chain entities is not just necessary but
these areas, for every job we create or sustain, our enables Exact to quickly get back into oversold an effective QR capability. As TFG continues critical. The best partnership-based relationships
orders support 4 or 5 other South Africans. This stock and sizes far more accurately and with to pioneer its QR model (which is arguably the are when there is the required level of commitment
includes not just the manufacturers we deal with, less waste within 56 days than if the styles are South African leader in this regard), development and where necessary the willingness to learn and
but the trim suppliers, fabric mills, dye houses and confirmed 6 months in advance. This has resulted of its supply chain entities is a pre–requisite. be mentored.
all other contributors in the supply chain. Each in delivering a better customer experience for their
of our suppliers is also encouraged to have local customers.
community upliftment projects. Exact’s testing process (to test and find the next
The Prestige Clothing (Caledon) case study indicates high volume product runs) is a critical part of
what we have achieved. their strategy to ensure that they are staying on
trend. By using reduced lead times to test product
WHAT IS THE MAJOR LOCAL SUPPLY CHAIN quickly greatly assists this testing process.
DEVELOPMENT CHALLENGE YOU ARE FACED
WITH? Should high volume product calls start to down
trend unexpectedly, Exact can effectively reduce
De-industrialisation in the clothing and textile volumes and its exposure to markdown by using
industry has led to a critical shortage of efficient and QR. They can move the fabric to another winning
commodity or division that needs the stock or
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | IN CONVERSATION WITH PETER ADAMS | 16EMPLOYEE WHY EMPLOYEE EMPLOYMENT IS SO
EMPOWERMENT
IMPORTANT TFG INITIATIVES INCLUDE:
• A strong leadership development focus
PROVIDING OPPORTUNITIES FOR
including coaching, master-classes and
EMPLOYMENT
where applicable, various business school
programmes
Retail is a large employment provider. Our
WHAT’S IMPORTANT South African operations employ 19 595
• Opportunities for bursaries for further
employees and 1 042 employees are employed
studies
• Providing opportunities for • 4% growth in the number of employees on in our African operations. Over peak periods
The Foschini Group Medical Aid Scheme we employ many additional contractors.Our
• Leadership development • A focus on stores and field development
participation in many work place experience
• Employment equity and diversity programmes has given many young South
LOOKING AHEAD • TFG Retail Academy which provides
• Skills development and talent pipelines Africans opportunities to upskill themselves in
numerous learning interventions for buyers
various retail functions which have given access
• Employee health and wellness and planners
• Establishment of a Youth Development to employment opportunities.
OVERALL GOALS Function specifically driving strategies
• The graduate development programme
for targeted youth employment and EMPLOYMENT EQUITY AND DIVERSITY
• Develop and grow diverse leadership talent development We believe that a successful organisation is a • Various skills development programmes
to ensure the continuous supply of a • Launch of new sourcing initiatives to meet diverse one, where different views and opinions leading to a qualification
capable, competent workforce transformation goals make the organisation sustainable for the
• Identify multiple talent sources to achieve • Establishment of more formal future. EMPLOYEE HEALTH AND WELLNESS
corporate transformation goals and ensure partnerships with service providers to
critical vacancies are filled Total employment equity representation in our At TFG we recognise that there are multiple
ensure that the wellness offering continues
South African operations has increased from elements that contribute to our employee’s
to improve and reach more employees 92.25% in 2016 to 93.22% in 2017. Employment overall well being.
KEY OUTCOMES
• Employee helpline to be re-marketed to equity representation at senior management The focus for the year under review was
• Transformation increase use by non-office based employees levels has increased to 24% for the year whilst on three specific elements of well-being:
• Refresh the employee wellness information at professional middle management and skilled physical, financial and emotional well-being.
• Leadership and skills development
portal to focus on specific health risks and junior management levels it has increased to Specific initiatives such as: wellness days
• Employee pipeline through leanerships, 52% and 90% respectively. Many employment across multiple locations; financial wellness
also provide useful information and contacts
bursaries, work place experience equity leaders continue to benefit from targeted workshops; and skills in trauma handling were
for those employees who are ready to make
development opportunities to ensure a steady initiated. Achievements for the year include
key lifestyle changes
HEADLINES growth through our pipeline. an increase in the number of employees
• TFG Retail Academy will focus on providing
We continue to allocate shares to our key participating in wellness days as well as an
our leaders, at all levels, with opportunities
• 206 outlets opened in TFG Africa and 689 employment equity middle managers. increase in the number of HIV/AIDS employees
to develop further Representation of women in the workforce receiving a managed treatment plan. In
new jobs created
• Continued partnership with the SETA to remains consistent at approximately 70%. addition to the uptake at the financial wellness
• 446 learnership opportunities created in TFG
offer new leadership programmes to all our Our senior management population is 50% workshops that were run in partnership with
Africa for the unemployed youth managers including our store managers. female and we continue to make progress Old Mutual for head office and distribution
• Absorption rate of 82% of previous learners These new programmes will be offered from with the employment of disabled employees. centre campuses, there has also been a drop in
into permanent employment within TFG NQF level 5 to NQF level 7 the number of garnishees from 2.0% to 1.8% of
• 148 workplace opportunities created in TFG • Launch a sustainable financial wellness LEADERSHIP DEVELOPMENT AND SKILLS total employees.
DEVELOPMENT
Africa for the unemployed youth solution by partnering with Old Mutual and
Our well being structures include a trauma
• R2.7m in bursaries awarded to students who Octogen The highly competitive retail market requires
helpline, a disease management programme
will come into pipeline positions • Rebrand and communicate TFG Benefits to a strong focus on talent management which
that provides support and guidance to
customer facing employees includes both talent acquisition by way of
• R2m worth of bursaries awarded to customers employees and line management, an HIV
• Ensure all employees in non-South African pro-actively identifying future incumbents for
• Participation in store wellness days grew by 75% treatment programme as well as on-site clinics
countries are receiving market related leadership positions in the pipeline, and talent
supporting occupational and primary health
• Partnered with Clicks and SpecSavers to development programmes developing our
benefits needs for our head office in Cape Town and
give our customer facing employees a more future leaders.
distribution centre campuses.
comprehensive benefit offering
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | EMPLOYEE EMPOWERMENT | 17EMPLOYEE
EMPOWERMENT
WHAT WAS ACHIEVED IN THE REPORTING YEAR? LEADERSHIP DEVELOPMENT AND SKILLS SKILLS DEVELOPMENT AND TALENT PIPELINE support services exist and are available free of
DEVELOPMENT charge to all our employees.
A focus on employing and training individuals
EMPLOYMENT EQUITY AND DIVERSITY
with a disability continues to be a focus. With the
During this period under review, new members The TFG skills development strategy was re- WHAT SHOULD WE EXPECT IN THE NEXT YEAR
structure of our new NEESDF now constituted
for the National Employment Equity and Skills implemented in 2016. OR TWO?
we envisage further work to be done on
Development Forum (NEESDF) were elected. The focus has been on driving development for disability. This will be seen in the form of a policy
This forum now consists of business facing senior During the medium term our focus will remain
our customer facing employees via our TFG Retail to support disclosure of a disability as well as
leaders. A new charter was drafted and signed on physical, financial and emotional well-being
Academy. Two learning pathways were launched awareness campaigns.
off by our Social and Ethics Committee to ensure with specific attention given to reaching our
in the first year namely, the Store Manager learning store and distribution centre based employees.
consistency within the NEESDF and our trading
pathway and the Area Manager learning pathway. EMPLOYEE HEALTH AND WELLNESS
divisions. Also a new communication strategy To this end we are looking at various partnerships
was development and meaningful objectives Our SETA initiatives are also incorporated into our We believe there is further opportunity to provide which will allow us to provide access to wellness
were set. Our new NEESDF vision is to influence TFG Retail Academy giving our customer facing more of our store based employees with access assessments and financial education for these
a sustainable transformation culture that enables employees an opportunity to develop their retail to wellness assessments and services through employees.
equity and diversity and this has also been and leadership skills. partnerships with various providers. Employee In addition we refer to the section above
incorporated into our TFG values. The programmes address training needs that use of the wellness helpline is good, however we Looking Ahead – which outlines our forthcoming
think we can do more to raise awareness that initiatives.
range from those that address on boarding
SKILLS DEVELOPMENT AND TALENT
new Store and Area Managers, supporting
PIPELINES
store managers on how to best optimise the
performance of their stores as well as needs
Over the past financial year, TFG Africa has
that incorporate enhancing coaching skills and
been able to reach over 600 unemployed youth
general leadership. To date we have retained
as part of our skills development initiatives.
approximately 88% of our participants on the
This entailed offering programmes such as
TFG Retail Academy. We envisage more work
Retail Management Development Programme,
to be done in developing our merchants so that
Management Development Programme, Senior
they are able to optimise our supply chain across
Management Development Programme,
the group. To enable the TFG Retail Academy to
Managerial Action Plan (RPL), Programme Retail
reach a wider audience with our customer facing
Practice, UNISA Retail Certificate, Store Managers
employees, blended learning methods have been
Retail Qualification and a new initiative to train on
developed and implemented successfully. Our
retail acumen called Retailing 1. Just under 750
vision for our technology facilitated learning
unemployed youth have been given opportunities
approach is to support the development of a
to gain work experience through internships at
learning culture to enable all TFG employees to
TFG Africa. Our external bursary programme
access learning content anytime, anywhere on
has expanded its partnerships by kick starting a
any device.
new bursary programme with the University of
the Western Cape. We continued to focus on our WHAT WERE THE DISAPPOINTMENTS?
disability initiatives and are making progress in the
EMPLOYMENT EQUITY AND DIVERSITY
employment of people with disabilities. We
Our progress in achieving transformation at
have managed to absorb approximately 50% of
senior management levels remains steady, but
our disability learners into permanent employment. slower than we had hoped.
TFG 2017 SUSTAINABILITY
SHARED VALUE & FOCUS AREAS | EMPLOYEE EMPOWERMENT | 18You can also read
