Foschini Group (TFG) intends to close approximately 280 of its stores in Africa as consumers increasingly prefer online shopping.
According to Bloomberg, the Cape Town-based fashion and retail giant plans to close around 80 locations by the end of March 2027, with another 200 stores to be closed over the next two years, up to 2029.
Brands represented by TFG include Markham, Totalsports, Sportscene, @home, Sterns, and American Swiss. The company has not disclosed details on the distribution of brands among the closing stores or the exact number of stores located in South Africa, which accounts for over 3400 out of the group's 3664 stores on the continent. TFG also operates in Australia and the UK, but these markets are not affected by the closure plans.
Consumer pressure shifting to online
The company has already closed 85 stores this year after deeming them economically unviable. Bloomberg also noted financial pressure on consumers in the near term.
The sharp rise in online sales has forced the company to revise its sales strategy. While TFG's physical store sales increased by 0.2% this year, online sales reportedly grew by 54%.
TFG's latest annual financial results showed revenue growth of 7.2%, reaching 67.1 billion rand for the year ending March 2026. However, net profit per share decreased by 33.5%, amounting to 675.4 cents, as profitability faced pressure.
A century in local retail
TFG was founded in 1924 by George Ivan Rosenthal, an American who came to South Africa and saw opportunities in the local fashion market. The first store opened in November 1925 on Pritchard Street in Johannesburg, and the concept of offering women affordable, fashionable, and quality clothing quickly gained popularity, allowing Foschini to expand to nine branches within two years.
In 1941, the company became the first clothing retailer to list on the Johannesburg Stock Exchange (JSE). After being acquired by Stanley Lewis in 1958, the company began diversifying its brand portfolio, notably through the acquisition of brands such as American Swiss and Markham in the late 1960s. It later acquired Sterns in 1993 and Totalsports in 2000.