HomeChoice claims digital shopping victory


HomeChoice claims digital shopping victory

Published Date: 2018-04-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

HomeChoice claims digital shopping victory

The direct marketing business says it's on its way to becoming a leading digital department store

HomeChoice International says customers have been quick to take up its mobile shopping channels due to their convenience - claiming it as an endorsement of its strategy to become a leading digital department store and finance provider.

The direct marketing business says revenue grew by 14.1% to R720 million in the first three months of its 2018 financial year, with retail revenue up 12.5% to R541 million as retail sales grew 16% to R398 million. In a trading update on Friday, HomeChoice said its financial services division grew revenue by 19% to R179 million due to strong growth in loan disbursements and an increasing contribution from its insurance business.

It said it continued to enjoy good demand for its products and was well positioned to take advantage of improving economic conditions, as well as growing digital adoption by customers.

Last August, HomeChoice claimed over one million customer hits on its digital platforms every month. It targets the LSM 4-8 middle-income market, which has been badly affected by rising living costs. The growing contribution from insurance and service fees has managed to offset the ceiling placed on interest rates on credit contracts by the National Credit Regulator. A recent court ruling on affordability assessment regulations should provide further respite. The Western Cape High Court set aside a requirement that credit customers have to provide specific documents to prove proof of income. The National Credit Regulator may appeal the judgement.

Its shares closed unchanged at R47 on Friday, after not a single trade. They have gained 27% over the past year.

Similar Stories