Average unit retail

The average selling price of one garment, derived as average transaction value divided by units per transaction. Approximately R270 in Year 1.

Beneficial occupation

A rent-free period granted by a landlord for fit-out and trading build. Six to eight weeks is worth R25 000 to R33 000 of cash and is not recoverable once the lease is signed.

Contribution margin

Achieved gross margin less the costs that vary directly with sales — sales commission at 1.25% and card acquiring at 1.68%. The basis on which break-even is calculated.

Creditor days

Trade payables divided by purchases, multiplied by 365. Rising from 24 to 40 days across the plan; each Year 1 day is worth R2 925 of cash.

Initial mark-on

The margin at which stock is bought, before markdown and shrinkage. Approximately 55.6%, or a 2.25 times cost multiple. It is never achieved.

Occupancy cost ratio

Total occupancy — rent, recoveries and marketing levy — as a share of revenue. Must stay below 12% in Year 1 and 10% at maturity.

Open-to-buy

A written budget per category per month, calculated as planned sales at cost plus planned closing stock less opening stock less stock on order. No purchase order issues without available budget.

Section 20 limitation

The South African rule capping the set-off of assessed losses at the higher of R1 million or 80% of taxable income. It does not bite here because both the loss and the profits sit well below the R1 million floor.

Small Business Corporation

A South African tax regime offering graduated rates including a zero-rate band for qualifying small companies. Combined with the Year 1 assessed loss it produces a nil tax charge across the projection.

Stock turn

Cost of sales divided by closing inventory. Rising from 2.6 to 3.8 times; the measure that reveals overbuying before the cash does.

Trading density

Revenue divided by gross lettable area, in Rand per square metre. The single comparable measure against the national all-centre benchmark of about R43 340 per m² in early 2026.

Turnover clause

A lease term requiring rent of the greater of base rent or a percentage of turnover. At 7.5% it becomes the operative basis from Year 3, taking 7.5 cents of every incremental rand of revenue.