Business

Retail therapy

As the new-look Connection Group moves from the IT to the retail sector of the JSE, markets are waiting to see what it will deliver in its new environment. Incredible Connection turnaround artist Antonio Fourie faces a tough half-year ahead in trying to work some magic.

01 September 2002

The Connection Group has come a long way from the precarious position in which it found itself three years ago. Then, the group was deeply in the red and had debt amounting to around R100 million. Struggling with directionless subsidiaries, the group relied on its flagship retail operation Incredible Connection to supply the major chunk of revenue.

The Incredible spending spree in 1999 resulted in 13 acquisitions. Some of the retailers acquired were in traditionally low-income areas and since it deals in high-end merchandise, the group did not enjoy the kind of returns it expected. It had to shut some of the outlets.

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