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Lewis gets a boost from ‘buy' rating
Furniture and electrical goods retailer Lewis yesterday, 22 July 2009, received a “buy” rating from the Bank of America citing the group's proven business model and low cost base.
“It is a very comprehensive report and coming from an international brokerage, it is positive for Lewis,” said Lewis CEO Alan Smart.
“We do believe that we are a buy,” he said.
Smart said: “Our business model has remained unchanged for years, and it has seen us through the good and the bad times.”
Lewis uses a customer-centric model, a business model organised around the needs of the customer. “In the current environment it has helped us maintain our profits and sales levels,” he said.
Godwill Chahwahwa, investment analyst at Coronation Fund Managers, said: “They have a business model that is focused on the bottom end of the market as reflected by their store base.”
He said that the company's debt-collection mechanism helped Lewis in the tough environment.
Lewis increased its revenue 6% to R3,8bn for the year to March.
Source: Business Day
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