Major retailer plans further store closures after shutting 120 outlets

Cape Town – The Foschini Group (TFG), one of South Africa’s largest retail groups, has closed 120 underperforming stores across the country as it restructures its operations amid mounting pressure on consumer spending.

The closures, recorded during the six months ended 30 September 2026, were partly offset by 41 new store openings, resulting in a net reduction of 79 outlets. The group now operates 3,585 stores across six African countries.

According to BusinessTech, the retailer, which owns brands including Foschini, Sportscene, Markham, Jet, Exact, The Fix and @home, attributed the restructuring to challenging economic conditions and subdued consumer demand.

“Consumer sentiment and discretionary spend in South Africa remained subdued as higher fuel prices and the resumption of interest rate increases weighed on disposable income,” the group said in its interim results.

The closures form part of TFG’s broader cost-cutting strategy, with the company also looking to expand its digital operations as more consumers turn to online shopping.

TechCentral reported that TFG Africa’s online sales increased by 53.3% during the reporting period, with its Bash e-commerce platform contributing 10.9% of the division’s sales, up from 7.4% a year earlier.

The group is also planning to close another 60 to 80 stores during the second half of its financial year, largely targeting outlets that are no longer economically viable.

Meanwhile, Reuters reported that TFG’s international operations continued to struggle, with its London and Australian businesses recording sales declines of 2.2% and 4.4%, respectively.

The group’s overall financial performance also reflected the difficult trading environment. Revenue increased marginally by 0.1% to R31.4 billion, while operating profit fell by 6.5% to R2.1 billion. Headline earnings per share declined by 6.8% to 272.8 cents.

Despite the setbacks, TFG said it was entering the second half of the financial year with a leaner cost base and improved financial position.

“While the first half has been difficult, the Group enters the second half with a leaner cost base, a smaller store footprint, strong online momentum, lower inventory and reduced net debt,” it said.

Bizcommunity further reported that the closures released R190 million in working capital, while the group estimated that some of the sales lost from the affected outlets would shift to its remaining stores and online platforms.

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