TFG to Close 180 Stores Over Three Years as Online Sales Surge

South African fashion retailer TFG announced on Wednesday it plans to close an additional 180 stores over the next three financial years, a strategic move to enhance profitability as its customers increasingly shift to online shopping. The company, which operates brands including Foschini, Sportscene, and Markham, is rightsizing its physical footprint in response to surging e-commerce sales.

Store Portfolio Optimization

TFG's plan is part of a broader effort to reduce costs and improve the efficiency of its store network. The company said it expects about 80 stores to meet closure parameters during the 2027 financial year, with another 100 stores slated for closure over the following two years.

This new phase of closures follows recent actions to streamline operations. In the 21 weeks ended August 22, TFG closed 85 stores that it determined were no longer economically viable, while also opening 25 new, more strategically located outlets.

E-commerce Growth Accelerates

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The decision to shrink its physical presence is directly linked to the rapid growth of TFG's digital channels. The company reported that group-wide online revenue rose 15.3% in the recent 21-week period, now accounting for 15.9% of total sales.

Growth was particularly pronounced in its African business, where online sales surged 54.1%, driven by the group’s Bash e-commerce platform. This lifted the contribution of online sales in Africa to 10.5% of the total, up from 7.1% in the same period a year prior.

Overall Performance Context

The strategic pivot comes amid a period of modest top-line growth for the group. TFG reported that total sales grew 0.2% to 23 billion rand ($1.43 billion) in the 21 weeks to August 22. However, its African business unit outperformed the group average, posting sales growth of 3.4% during the period.