TFG has announced plans to close a further 180 physical stores over the coming three financial years as it seeks to improve margins and rationalize its retail estate while shifting more sales online. The company, which operates labels such as Foschini, Sportscene and Markham, said the move forms part of a broader effort to reduce operating costs and enhance the efficiency of its store portfolio.
For the 21 weeks ended August 22, group sales rose 0.2% to 23 billion rand. Within that trading period, the company's African operations recorded growth of 3.4%.
During the same period TFG closed 85 outlets it judged were no longer economically viable and opened 25 new stores. Management expects roughly 80 additional stores to meet their closure criteria in the 2027 financial year, with a further 100 stores projected to fall into closure parameters across the two financial years that follow.
Group online revenue increased by 15.3% in the reporting period and accounted for 15.9% of total sales. In Africa specifically, online sales surged 54.1%, a jump the company attributed to momentum on its Bash e-commerce platform. This performance lifted online penetration in Africa to 10.5% of sales from 7.1% in the prior comparable period.
The announced closures are explicitly framed as cost-reduction and efficiency measures for the store network rather than an expansionary strategy. By trimming locations that no longer meet economic thresholds and redirecting resources toward higher-return channels, TFG aims to better align its physical presence with current consumer demand and online growth trends.
Investors and market participants will likely watch the phased implementation over the next three financial years for its effect on the group's cost base and the degree to which online growth can offset lower footfall and a smaller store footprint. The company has provided a timetable - approximately 80 closures expected in 2027 and around 100 more across the subsequent two years - that signals a multi-year transition rather than an immediate, concentrated wave of exits.
Financial and market context
Sales growth for the 21-week period was modest at 0.2% to 23 billion rand, while the African business outperformed slightly with 3.4% growth. Online channels are expanding their contribution to overall sales, with group-wide online revenue at 15.9% and African online penetration rising to 10.5%.
Operational actions
- 85 stores closed as no longer economically viable; 25 new stores opened in the same period.
- Planned additional closures: about 80 stores during the 2027 financial year and another 100 over the following two years.