Speaking at the JSE last week, Murray, who has been in his post for about a decade, said the group would struggle to match its own performance from last year, but its results, when released, would still show an improvement.
"It is very tough in SA. You will see that our competitors are making similar comments," said Murray. "We had hoped to be trading our business at around similar levels as last year, but realistically, we are going to be around mid-single digits. That seems to be where business is at the moment," he said.
Murray said the group would not be cutting jobs despite the tough operating conditions.
"I don't believe in retrenchments. I don't think it works. Unfortunately, you tend to lose all your good people and you kill the culture of your group for several years after that. I much prefer freezing staff appointments and going down the route of natural attrition," the CEO said.
Part of TFG's diversification has been to enter the UK and Australian markets. The group went offshore and acquired UK's Phase Eight in January 2015. In May, it entered Australia, acquiring menswear specialist Retail Apparel Group.
Murray said the UK was proving to be a tricky environment "at the moment" in the wake of the Brexit vote. "There is a little bit of uncertainty there. One of the things we have in our favour is that Phase Eight doesn't only operate in the UK, but in 25 other countries as well. So, we have a degree of a hedge," said Murray.
In Australia, Murray said, the Retail Apparel Group operations were achieving the big targets set for them in line with management's expectations. "We are very happy in Australia. Contrary to what you might be hearing about the country, it has been very good to us. I do think that the whole Australian negativity has been overplayed," said Murray.
TFG's share price rose 31% in 2016, but is down 1.34% in the year to date. Among rivals, Woolworths fell 29% in 2016 and has crept 6.72% lower so far in 2017. Truworths lost 13% in 2016, but is up 5% in 2017.
Source: Business Day
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