Growth for top end as business travel returns to normal levels

Kennith Barlow…Optimistic, and still investing.

George, W. Cape, SA – The luxury end of the travel goods market “is doing better than more affordable alternatives”, FrontierCo group merchandise executive Kennith Barlow said this month.

“I know that sounds odd in the present economic climate, and we’re not oblivious to the fact that the target market is a very small portion of the population, but there are solid reasons. Overseas travel – especially business travel – has returned to pre-covid levels. Unfortunately, emigration is also playing a part.”

On the hard luggage side, its premier brand is the French make, Delsey (from R4999 to R12999 retail for an 80 cm trunk). Its ‘economy’ offering is locally FrontierCo owned and designed Travelite (around R3000 for a 78 cm trolley case).

Travelite is stronger in domestic tourism, he said.

FrontierCo is the company resurrected from the old House of Busby which went into business rescue in June of 2020. FrontierCo managed to save the Guess, Aldo, Frasers and FrontierCo Vision (then SDM – distributing Tom Ford, Adidas, Ted Baker, Polo and Guess Eyewear) businesses. Soon after business rescue it acquired the premium clothing brand, Pringle of Scotland and in 2022 it acquired the Mr Tekkie footwear chain from Braam van Huyssteen.

“Even before Covid, the House of Busby was a substantial loss-making business and was seen as distressed by most banks” Barlow said, “With strong leadership in CEO Bernard Mostert and the rest of the executive team, we have managed to turnaround loss-making brands into a profitable business.”

The travel division, also run by Barlow, has the luggage focused stores as well as a wholesale division distributing the Delsey, Travelite and Busby Leather brands.

The luggage stores – previously Frasers – are in the process of being rebranded Destinations by Frasers (with the emphasis on ‘Destinations’), and are being given a makeover. “Traditionally, travel stores in South Africa haven’t been very exciting,” he said. “With the exclusion of some very well-run independents, it hasn’t been a dynamic space. We’ve been fortunate to be able to work with top international principals in store builds and their expertise has assisted us to redesign our travel stores into more modern and dynamic spaces.”

Destinations’ new flagship stores are in Sandton City and the V&A Waterfront. So far 11 of the 30 Frasers stores have been rebranded and redesigned.

To broaden the offering and include the outdoor market, it has started an offshoot chain – Destinations Outdoor & Travel – which includes outdoor apparel and footwear along with luggage. Brands include Advance, Hi-Tec, Jeep, Columbia, Thule, First Ascent, Stanley, Merrell, Salomon and other known outdoor brands. The first 3 stores are in Atterbury Mall, Somerset West Value Mart and Eden Meander in George. A 4th is currently opening in Fourways Crossing, and 2 more are planned for Weskus Mall and Newmarket. “It caters to a more holistic travel experience based on weather conditions and clothing requirements,” he said.

Luggage wholesale is “much smaller” than retail, he said. “We do supply Delsey to all the major independent luggage retailers, and we get regular reorders from them.

“I hope there is potential growth for wholesale, but I don’t see many new independent stores opening. Also, they tend to stock a lot of brands with a lot of options, where we have seen more success in focusing on fewer, stronger, brands and styles customers are looking for.

“The area that IS showing strong growth for wholesale is fashion online. This is especially evident by repeat orders coming through from top online fashion retailers.”

The homegrown Busby leather brand – mainly leather wallets, purses, and similar goods – and a range such as Guess handbags – have a broader appeal, and are supplied to a cross section of footwear and clothing retailers.

“Overall, the last 12 months have been good,” he said. “The last 3 have been tougher, but we remain extremely optimistic about the travel market in South Africa, and we continue to invest in it.”

Destinations by Frasers…All stores are getting a makeover with input from international principals.