Consumer Industries Editor

CAPE TOWN The Queenspark clothing chain owned by Rex Trueform Clothing Company has a significant opportunity for further turnover growth without increasing its infrastructure and overheads burden, Rex Trueform CEO Catherine Radowsky says in the group's latest annual report.

In the year to June, the chain contributed R253,7m to group turnover of R354,8m and manufacturing operations contributed the rest. A geographical breakdown of Rex Trueform's turnover was R312m in SA, R33,9m in the US, R7,1m in Australia and R1,7m in the UK.

Queenspark's trading densities are R16098/m², up from R13592/m² last year. By comparison, Truworths International had annualised retail sale of R18120/m² for the year to June .

Radowsky said that Queenspark plans for this year included the opening of a number of new stores in areas where Queenspark was not properly represented, as well as the upgrading, refurbishment and relocation of certain existing stores.

Queenspark opened its second franchise store outside SA, in Gaborone, after opening its first in Windhoek. Radowsky said these franchises were successful, and further similar ventures were likely to be undertaken in the near future.

The group also has a minority stake in Queenspark Australia, which is run by the son of founder Stewart Shub. Radowsky said the business has been highly successful, and Queenspark Australia now operated from five stores. A sixth would open soon.

The Australian associate had repaid the initial loan from the company, and the stores were now expanding from internally generated funds.

The major shareholder in Rex Trueform is African & Overseas Enterprises, with 73% of the shares. African & Overseas is in turn 57% held by the Stewart and Pat Shub Family Trust.

Shub died last week, and the group announced on Tuesday that George Thomas, formerly deputy chairman, would become nonexecutive chairman of both companies.

Oct 17 2003 07:21:55:000AM Charlotte Mathews Business Day 1st Edition