Australian suiting brand Politix has sparked a retail rollout in South Africa as part of an official push in the market.
The suiting brand recently opened three stores across the country, including one in the Mall of Africa, another in Fourways and a third in Rosebank.
Politix is part of the Country Road Group house of brands, alongside Country Road, Mimco, Trenery, and Witchery. The group is owned and managed by Woolworths Holdings Limited (South Africa).
“We are thrilled to bring Politix to South Africa, where we’re known for our vibrant culture and growing fashion scene,” Country Road Group country manager Kay Raidoo said.
“Our Politix collection is designed to resonate with the modern man who appreciates effortless style and unmatched comfort. Our ambition is that soon we’ll be the number one destination for ready-to-wear menswear in the country.”
The recent move comes after Politix’s parent company had to write down the value of the Australian suiting brand Politix amid a recent tank in profits for Country Road Group in FY24.
According WHL’s Annual Financial Statements 2024, the company identified a loss of R609 million (~A$50 million) related to the value of Politix.
WHL claimed the challenging macro economic environment and inflationary pressures on consumer disposable income has resulted in a lower recoverable amount for Politix cash-generating unit (CGU), totalling R514 million (A$42.3 million).
An independent auditor in the report said the South African business held goodwill, brands and customer databases at a carrying value of R6,716 million (A$556.82 million).
Goodwill refers to an intangible asset that represents the premium a company pays when it acquires another business. This premium is above the fair value of the identifiable assets and liabilities of the acquired business.
Goodwill typically includes things like the value of the brand, customer relationships, and other non-physical assets that contribute to the business's reputation and future earning potential.
According to the Annual Financial Statements report, the carrying value of goodwill of Country Road Group is R1,238 million (A$102.5 million).
The write-down of value for Politix comes as Country Road Group reported a 6.8 per cent fall in revenue over the last financial year, hitting R14,074 million (A$1.16 billion).
This fall contributed to a drop in profit before tax, which was down R533 million (negative A$44.15 million) in FY24 after hitting a record R1,512 million (positive A$125.26 million) in FY23.
WHL added that sales growth in the second half declined by 11.3 per cent for Country Road Group.
“Notwithstanding the macro-economic challenges, the Country Road brand delivered its strongest performance on record, with positive sales growth. Trading space increased by 4 per cent,” WHL reported.