Foschini Group to close 300 stores across South Africa

Foschini Group store closures will see 300 South African outlets shut as TFG cuts costs and targets higher profitability.

South African retail giant The Foschini Group Ltd (TFG) has identified about 300 underperforming and marginal stores for closure after shutting 100 outlets during its 2026 financial year, as the company moves to lower costs and improve profitability.

The retailer said the closures form part of a broader restructuring after operating expenses outpaced sales growth during the year. TFG also deferred R600 million ($36.2 million) in capital spending and introduced short-term cost-saving measures across its operations in Africa, Australia and the United Kingdom.

Retailer targets lower costs

In its integrated report for the year ended March 31, 2026, Chief Executive Anthony Thunström said the company is reshaping its business after completing most of its five-year BOLTS strategy, Build Out, Optimise, Leverage, Transform and Sustain.

“Great businesses and brands have been built and invested in. The priority now is to align the platform with the realities of the current environment,” Thunström said.

The retailer’s earnings have come under pressure in recent years. Net profit fell to R1.32 billion ($79.8 million) in 2026 from R2.91 billion ($175.8 million) in 2022, weighed down by impairments, rising operating costs and higher borrowing expenses following a series of acquisitions.

Finance costs nearly tripled over the same period to R2.05 billion ($123.9 million), up from R783.8 million ($47.4 million) in 2022.

Thunström said TFG’s multi-brand model carries a relatively high fixed-cost base, leaving margins more exposed when consumer demand weakens. Rather than waiting for trading conditions to improve, the retailer is acting now to strengthen returns.

“We are taking the decisive, strategic action required now to protect and improve profitability, productivity and capital returns,” he said.

Bash drives a more capital-light strategy

A key part of TFG’s turnaround plan is its Bash e-commerce platform, which launched in February 2023 and has rapidly expanded its contribution to the business.

Online sales accounted for just 3.1% of TFG Africa’s turnover in 2022 but exceeded 10% in 2026. Bash’s sales grew 49% year over year while delivering margins comparable with the retailer’s physical stores.

According to Thunström, the additional R1.1 billion ($66.5 million) in Bash sales generated during the year would have required more than 100 new stores and about R500 million ($30.2 million) in capital and inventory investment under the traditional model.

Instead, TFG plans to use Bash’s fulfilment network to support future growth while reducing the need for new stores. The retailer will also simplify its African brand portfolio through Project Vela, which consolidates brands into more efficient operating structures.

TFG simplifies brand portfolio

The restructuring includes tighter control of capital spending and inventory, lower corporate overheads and wider use of AI-powered automation to improve efficiency.

Chairman Michael Lewis said the changes would better position TFG to navigate a challenging global economic and geopolitical environment.

Founded in Cape Town in 1924, TFG operates 39 brands, including Foschini, Sportscene, Markham, Jet, Exact and Totalsports, with businesses across South Africa, the United Kingdom and Australia.

The planned store closures mark one of the retailer’s biggest operational shifts in recent years as it adapts to changing consumer shopping habits.