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Gold Brands to mitigate tough economic conditions with unique concepts

Creamer Media Contributing Editor Online
While South African franchiser Gold Brands’ revenue for the six months ended August 31 fell 72.6% to R27.6-million year-on-year, owing to losses experienced from store closures incurred by lease expiries, the company’s gross profit margin increased from 30.9% to 47.3%, thanks to a more aligned sales mix and an ongoing revision and implementation of stricter controls. The company on Thursday explained that the significant decline in revenue was also a result of the economic slowdown, compounded by management's restructuring of Gold Brands’ portfolio, the internal restructuring of management's supply chain to further reduce risks, and the relocation of the company’s remodelled Chesanyama stores into higher-demographic areas.

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