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    Home » News » TFG snaps up Quench in big e-commerce, logistics push

    TFG snaps up Quench in big e-commerce, logistics push

    By Duncan McLeod2 December 2021
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    TFG – the retailer also known as The Foschini Group – has, through its Labs division, acquired Quench, a digital shopping platform and last-mile delivery provider.

    The value of the acquisition has not been disclosed.

    “It forms part of TFGLabs’ ambition to become South Africa’s next e-commerce powerhouse by attracting not only the best in tech talent but e-commerce capabilities, too,” TFG said in a statement on Thursday.

    TFG brands include Foschini, Markham, @home and Totalsports.

    It forms part of TFGLabs’ ambition to become South Africa’s next e-commerce powerhouse

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

    About three-quarters of TFG orders are currently fulfilled through its retail 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 is highly correlated to e-commerce penetration and purchase frequency,” Hanan said.

    TFG said the deal will enhance its fulfilment capabilities through “proprietary software and engineering, bringing a scientific approach to planning, least-cost routing and asset utilisation”.

    ‘Tactically’

    “Additionally, TFG plans to leverage the acquisition to tactically improve overall stock turn and store density,” it said.

    TFG will continue to service Quench’s existing partners and customers. According to Quench’s website, these include Woolworths and Dis-Chem along many other, smaller retailers.

    Quench, which was founded in 2016, secured a round of financing earlier this year from Imvelo Ventures, a venture capital firm founded by Capitec Bank and Empowerment Capital Investment Partners.  — © 2021 NewsCentral Media

    Now read: Massmart’s big bet on e-commerce in South Africa



    Capitec Claude Hanan Dis-Chem Empowerment Capital Investment Partners Imvelo Ventures TFG TFGLabs The Foschini Group Woolworths
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