Coricraft boosts South Africa's furniture sector with local production expansion, says LSF

South Africa’s furniture sector has received a significant boost as leading retailer Coricraft expands local production of upholstered seating at its Epping facility in Cape Town, reducing reliance on imports and supporting more than 500 jobs.

Backed by the Localisation Support Fund (LSF), the initiative has shifted tens of millions of rand worth of furniture production into the local economy.

Coricraft has already achieved nearly 10% growth in productivity and a 38% improvement in efficiency by adopting lean manufacturing practices, real-time monitoring, and new planning tools that allow it to respond more quickly to market demand.

According to Shani Naidoo, group director responsible for Coricraft and The Foschini Group (TFG) Home business, the initiative represents more than just operational improvements.

“By producing more locally at Coricraft, we are securing jobs, strengthening suppliers, and proving that South African manufacturing can compete at scale,” she said.

An important part of the localisation strategy is that much of the raw material for the seating — including timber, board and foam — is sourced locally. This strengthens upstream industries, creates multiplier effects across the value chain, and embeds more jobs in South Africa’s manufacturing ecosystem.

Industrial engineers from Dizani Consulting worked with Coricraft to implement time-and-motion studies, performance dashboards, and daily accountability routines.

Production layouts were redesigned to match product mix, and logistics streamlined through a pull system. The result is a repeatable operating model that boosts output while creating a foundation for further localisation.

For TFG, which acquired Coricraft in 2021, the project reflects its broader strategy to rebuild South Africa’s manufacturing base and reducing reliance on imports across its brands, including @Home. 

“This milestone shows TFG’s commitment to world-class local manufacturing that creates jobs, builds resilience, and reduces reliance on imports,” said TFG CEO, Anthony Thunström.

While technical in nature, LSF said the lessons from this project were clear for the sector as a whole. By planning to standard times rather than units, measuring performance in real time at the right level, and aligning layouts and material flow to actual demand, manufacturers can achieve sustained improvements in productivity and cost efficiency.

When coupled with lean principles such as 5S lean manufacturing and daily leadership routines, these practices embed a culture of continuous improvement and create a scalable platform for adding new local product lines, deepening domestic supply chains, and protecting jobs.

For Coricraft, the success of this initiative is only the beginning. The company is already exploring further opportunities to localise additional ranges by building on the lean principles and management systems it has now embedded.

LSF CEO Irshaad Kathrada on Tuesday said the project demonstrates the multiplier effect of localisation.

“The Coricraft initiative is a clear example of how partnerships can unlock growth in local manufacturing. It highlights the leadership role that TFG is playing in strengthening domestic industries and creating sustainable jobs,” Kathrada said. 

“Strategic localisation is not about isolation or protectionism, but leveraging domestic demand to enhance industrial competitiveness. We need to reduce dependency on imports, not only because it strengthens our economy, but because very often it makes business and commercial sense.

“Localisation can insulate our industries from global supply shocks and ensure that supply chains are more agile and respond readily to customer needs. The Coricraft case shows what is possible with clear strategy and intent. Without a doubt, we can do more as a country to grow our local manufacturing industries and we look forward to working with the broader furniture sector to build on these learnings.”

Greg Boulle, CEO of the South African Furniture Initiative (SAFI), added that the case shows the potential across the industry.

“Coricraft's lean manufacturing transformation proves that every furniture manufacturer in South Africa can dramatically improve their competitiveness – regardless of size. By embracing lean principles and fostering a culture of continuous improvement, manufacturers can slash production costs, maximise returns on their investments, and go head-to-head with cheap imports,” Boulle said.

“But the real winner here is the South African economy – localisation through lean manufacturing means more jobs, stronger communities, and a thriving domestic furniture industry that can compete on the global stage.”

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