DMF has branches across Johannesburg, with plans to expand to other main centres of South Africa in 2020. It opened stores at The Glen Mall in August and at Fourways Crossing store in September.
“Off-price retail is a treasure hunt for consumers who enjoy the thrill of a bargain,” said David Fine, DMF CEO.
Based on the same business model as American department store chain TJ Maxx, which had a $50bn in turnover last year, DMF offers popular brands at affordable prices using procurement methods.
“We thrive off the ‘mistakes’ of traditional retailers, buying their excess inventory, as well as that which has been returned by e-commerce channels. When people return unwanted items of clothing, rather than going back into inventory, these clothes are sold at cheaper prices by the e-commerce business. We buy this stock and pass the discounts of between 60% and 80% onto our customers,” said Fine.
“We merchandise differently because we stock inconsistent ranges, so customers shop by department, category and size. If you’re looking for a dress, you will look through a rail of unique items in your size. There will probably only be one of that particular item in the entire store.”
Fine said TJ Maxx turned its entire inventory 6.5 times a year, and DMF rotated 30% of stock each week, putting in new stock and moving items to different stores across Johannesburg.
“We want our customers to feel there is always something new available. In some stores, we have customers waiting for the trucks to deliver so they can have the first option.”
