Lewis

Lewis is South Africa’s largest furniture brand and contributes 69.1% of the group’s merchandise sales. Stores sell a range of household furniture, electrical appliances and home electronics to customers in the LSM 4 to 7 target market.

Stores are generally located in main streets and town centres. Each store carries a basic range of merchandise and
stores then select a further optional range to cater for specific markets and regional differences. Lewis has 513 stores, including 70 stores in Botswana, Lesotho, Namibia and Swaziland.

Conventional stores average 450m2 and the smaller format stores 250m2. The smaller format store, which was introduced in 2010, has enabled the chain to gain access to high traffic areas at more affordable rentals. This store format offers customers key merchandise lines, with the full range available on the electronic catalogue and display screens in-store. Lewis now has 201 small format stores in its portfolio.

Financial and operating performance    2017 2016 2015
Revenue Rm  4 137 4 564 4 645
Revenue growth (9.4) (1.7) 6.6
Merchandise sales Rm  1 804 2 039 2 102
Merchandise sales growth (11.6) (3.0) 4.9
Credit sales 67.3 64.9 68.97
Operating profit Rm  424 700 922
Operating profit margin 10.3 15.3 19.9
Stores opened/(closed)    (13) 18 14
Total stores    513 526 508
Total trading space m2  181 135 191 380 188 752
Annual revenue per m2 R’000  22.8 23.9 24.6

The Lewis brand has been adversely affected by the widespread drought and affordability assessment regulations as the vast majority of its stores are located in the more rural areas.