TFG online hopes get Quench boost

TFG, the owner of retail chains such as Foschini and Totalsports, has acquired digital delivery service provider Quench, which already has partnerships with Woolworths and Dis-Chem, for an undisclosed sum. The fashion retailer said it acquired Quench as part of its ambition to become an SA “e-commerce powerhouse”.

TFG, the owner of retail chains such as Foschini and Totalsports, has acquired digital delivery service provider Quench, which already has partnerships with Woolworths and Dis-Chem, for an undisclosed sum.

The fashion retail giant said in a statement on Thursday that it acquired Quench through its Labs division as part of its ambition to become an SA “e-commerce powerhouse”.

Quench started out delivering alcohol but branched into groceries in March 2020 when it partnered with Woolworths and then followed that up in December that year when it began deliveries for Dis-Chem customers.

“With this acquisition we gain access to fast, reliable delivery across SA while achieving superior delivery unit economics,” said Claude Hanan, cohead of TFGLabs.

QUENCH STARTED OUT DELIVERING ALCOHOL BUT BRANCHED INTO GROCERIES WHEN IT PARTNERED WITH WOOLWORTHS

“With 75% of orders fulfilled from stores, Quench’s network of micro-carriers will become an essential enabler for our ‘ship-from-store’ strategy. All international market data shows that delivery price, reliability and speed are highly correlated to e-commerce penetration and purchase frequency,” he said.

TFG said the Quench acquisition will enhance its ability to service clients by using cuttingedge software and engineering capabilities to bring a more scientific approach to planning, least-cost routing and asset utilisation. It also plans to use the acquisition to improve its overall stock turnover and store density levels.

It appears the TFG acquisition will not affect the partnerships with Woolworths and DisChem, with Hanan quoted as saying “for now it’s business as usual at Quench”.

“We will continue to service Quench’s existing partners and customers and in fact immediately invest in improving our offering and service to both. Our team has extensive experience across last-mile delivery and technology platforms.”