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Durban - TFG has acquired 100 percent of the Retail Apparel Group (RAG), an Australian menswear apparel retailer, for A$302.5 million (R2.94 billion).

TFG’s acquisition of RAG further broadens its international expansion into chosen geographical areas with a product and value offering that is well aligned with TFG’s multi-brand business model.

TFG chief executive Doug Murray said: “We are excited to be able to realise our ambition to expand into Australasia through the very successful RAG business and its well established and experienced management team.”

RAG was established in 1987 and houses a balanced portfolio of predominantly menswear brands, making it a leading player in the value to mid-market, fashion-conscious menswear, speciality segment in Australia and New Zealand.

The majority of RAG’s 400 stores are located in high foot traffic areas within regional and suburban shopping centres. RAG’s portfolio consists of five brands: Rockwear, Tarocash, yd, Connor and Johnny Bigg.

TFG is home to a comprehensive portfolio of 27 retail brands that trade in clothing, footwear, jewellery, sportswear, home ware, cellphones and technology products, throughout 3 328 outlets in 34 countries.

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TFG has growth ambitions, both in the international markets and in the African continent. The group plans to open more than 110 international outlets in the current financial year with 150 new African stores earmarked in the continent. The group said this would increase trading space by some 5 percent.

In the results for the year to end March, the group opened 331 outlets; 206 in Africa and 125 internationally. It closed 128 outlets as part of its ongoing capital optimisation project, converting 37 of these to other group brands.

In South Africa, 160 new outlets were opened during the year and 37 former Fashion Express outlets were converted to other brands in the group, bringing the total number of South African outlets to 2406.

The group said net trading space in African operations had grown by 4.4 percent since March 2016. TFG shares dipped 5.79 percent on the JSE to close at R132.34.