SA fashion retailer TFG to close a further 180 stores
South African fashion retailer The Foschini Group (TFG) says it expects to close a further 180 stores over the next three financial years in a bid to improve profitability as online sales surge.
The group, which owns clothing brands including Foschini, Sportscene and Markham, reported sales growth of 0.2% to R23 billion in the 21 weeks ended August 22, with its African business growing 3.4%.
The retailer closed 85 stores that were no longer “economically viable” during the period and opened 25 new outlets.
About 80 additional stores are expected to fall within closure parameters during the 2027 financial year, with a further 100 stores projected over the following two financial years.
TFG said the planned store closures are part of efforts to structurally reduce costs and improve the efficiency of its store portfolio.
Group online revenue rose 15.3% in the same period, accounting for 15.9% of total sales, the retailer said.
In Africa, online sales surged 54.1%, driven by the group’s Bash e-commerce platform, lifting online sales to 10.5% of the total from 7.1% in the prior period.
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