The Foschini Group (TFG), one of South Africa’s leading omnichannel retail groups, is preparing to shut more than 100 stores across South Africa, signaling one of the most significant structural resets in the country’s retail sector as consumer behavior shifts decisively toward digital channels.

The move underscores a broader transformation in African consumer markets, where rising cost pressures, weak discretionary spending, and accelerating e-commerce adoption are forcing retailers to rethink physical expansion strategies in favor of efficiency and capital discipline.

Retail footprint comes under pressure

TFG has identified roughly 300 underperforming outlets across its multi-brand portfolio, with more than 100 earmarked for closure over the next 12 months. The decision reflects a strategic pivot away from scale-driven expansion toward profitability-led optimization.

Chief Executive Anthony Thunstrom said the group’s previous acquisition-heavy growth model created operational complexity that no longer aligns with current market conditions. The company is now prioritizing store productivity, margin protection, and return on capital over geographic reach.

Digital commerce reshapes sales mix

A key driver of the restructuring is the rapid rise of digital retail channels. TFG’s online platforms are now generating sales equivalent to more than 300 physical stores, underscoring the speed at which e-commerce is reshaping South Africa’s retail economics.

This shift reflects broader consumer trends across the country, where households are becoming increasingly price-sensitive and selective in fashion, apparel, and lifestyle spending categories.

Earnings highlight cost pressures

TFG operates a diversified portfolio of 39 brands, including Foschini, Sportscene, Markham, Jet, Exact, and Totalsports. Despite a 7.2% increase in revenue to R62.4 billion ($3.7 billion), headline earnings per share fell 33.5%, while operating profit declined 36% to R3.9 billion ($235 million).

The divergence between top-line growth and profitability highlights rising cost pressures, store inefficiencies, and the drag of an oversized physical footprint.

Structural reset defines next phase of African retail

With operations spanning South Africa, the United Kingdom, and Australia, TFG remains one of Africa’s largest retail groups. However, the planned closures mark a decisive shift in strategy across the sector.

The future of African retail is increasingly being defined by digital agility, data-driven inventory management, and cost discipline rather than store count expansion. For investors, the message is clear: profitability and platform strength now outweigh physical scale in determining retail winners.