Foschini Group Ltd: Transforming HR

Abstract

Foschini Group's (FOS) Shani Naidoo was in excellent spirits when she walked out of a two-day group strategy meeting in October 2009. As managing director for group human resources (HR) since 2005, it was evident that the changes that she and her team had implemented had successfully made HR a critical part of Foschini's overall business strategy. In pursuit of their vision to get rid of the company's silo mentality, the HR team had introduced a totally new, centralised HR model. Despite the shake-up, Naidoo believed there was still a great deal more that needed to change. She did wonder, however, if she might have gone too far.

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

Resources

Exhibit 1 Foschini Timeline

1924

George Rosenthal, a Russian immigrant, whose entrepreneurial spirit led him to export clothing out of the United States, arrives in South Africa with a vision of opening up a shop called Foschini (an old Italian family name that he liked!), retailing women's clothes imported from the United States.

1925

The first Foschini store is opened in Johannesburg, offering women well-made, up-to-date and inexpensive garments. In just over a year, there were nine branches throughout the country and, within three years, Foschini was a household name.

1937

Foschini Limited is the first of South Africa's fashion chains to become a public company.

1940s

Foschini's first head office is built in Somerset Road, Cape Town.

1958

Stanley Lewis buys a major shareholding in Foschini Limited, bringing in a new drive and business focus.

1967

The American Swiss Watch Company joins the Foschini Group.

1968

Markhams joins the group. Both companies were born out of the same entrepreneurial spirit of the 1900s.

1969

Pages Stores is established, catering to the lower socio-economic group.

1969

Foschini Limited becomes the Foschini Group.

1974

The head office moves to Parow, and executive action is implemented to grow the Foschini Group into the vast retail chain that it is today.

1987

The Foschini Group commemorates 50 years as a public company.

1993

Sterns, a jewellery chain that markets to the middle to upper end of the market, is acquired.

1996

The Sportscene brand, Foschini's venture into the macro sports lifestyle market, is launched, offering freesport brands and urban style-type sportswear to the young market.

1997

donna-claire, offering contemporary fashion apparel to the “fuller” size, is launched.

1999

exact!, a rebranding of the original Pages Stores is launched, offering quality and affordability in an aspirational environment.

1999

RCS Group, responsible for offering personal finance to customers and card facilities to customers of merchants outside the group, is launched.

1999

TFG Manufacturing Company is rebranded to TFG Apparel Supply Company – responsible for in-house merchandise procurement.

2000

Totalsports is acquired to be the second brand within the sports market, offering apparel and footwear in key sporting areas to the everyday athlete.

2000

Matrix, a third brand in the jewellery division, is launched, offering branded accessories to the younger customer.

2001

fashionexpress, the value chain, is created out of ailing Foschini stores that could not sustain the “new” Foschini positioning.

2001

@home, the homeware store concept, is launched, marking the group's entrance into the burgeoning homewares market, appealing to the discerning homewares customer.

2004

DueSouth, a new outdoors concept, is launched as the group enters into the outdoor apparel and equipment market.

2004

The Markhams brand is repositioned and rebranded as Markham – an exciting, relevant and aspirational brand.

2005

Luella, the Foschini division's fourth major brand, is launched, offering a range of ladies' footwear, handbags and accessories aimed at the middle- to upper-middle market.

2005

@home launches @homelivingspace – an exciting new format of furniture lifestyle stores, offering a full range of contemporary furniture in two new lifestyle shopping centres in Cape Town and Johannesburg.

2007

Foschini Retail Credit is rebranded as FG Financial Services.

Source: Foschini Group website – available www.foschinigroup.co.za

Exhibit 2 FOS Corporate Structure

*All divisions are wholly owned, with the exception of the RCS Group, in which Standard Bank of South Africa Limited (SBSA) has a minority share.

Source: Information provided by Shani Naidoo, 16 March 2010.

Figure

Exhibit 3 Group HR Structure

Source: Information provided by Shani Naidoo, 16 March 2010.

Figure

Exhibit 4 Foschini's 2014 HR Vision

Figure

Exhibit 5 FOS's First Feel Good Store

Figure

This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.

2024 Sage Publications, Inc. All Rights Reserved

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