TFG: 180 Store Closures Risk Job Losses in South Africa

• The Foschini Group (TFG) plans to close 180 more stores across South Africa over the next three financial years.
• These closures, affecting brands like Foschini, Sportscene, and Markham, are expected to result in job losses, though specific numbers are not yet known.
• The move is driven by a significant shift towards online shopping, which saw TFG's digital sales jump 15.3% while total sales grew only 0.2%.
• TFG has already closed 85 "economically unviable" stores in the past 21 weeks, leading to a net loss of 60 stores after opening 25 new ones.
• The company aims to cut costs and improve network efficiency in response to consumers increasingly using platforms like Bash for online purchases.

The increasing preference for digital transactions over physical retail visits is compelling retailers like TFG to re-evaluate and streamline their store networks, leading to the closure of underperforming locations and, consequently, potential job losses.

The Foschini Group (TFG) is set to significantly reduce its physical retail footprint across South Africa, with plans to close an additional 180 stores over the next three financial years. This strategic move places numerous positions at risk within well-known brands such as Foschini, Sportscene, and Markham nationwide. While the exact number of job losses resulting from this upcoming round of TFG store closures has not been disclosed by the group, such actions typically lead to staff reductions.

This latest announcement follows a period of substantial consolidation for the retail giant. In just the past 21 weeks, TFG has already shuttered 85 outlets that it deemed no longer "economically viable." During the same timeframe, the company opened only 25 new stores, resulting in a net reduction of 60 operational locations and the associated retail jobs in South Africa. The group anticipates further closures, with approximately 80 stores expected to cease operations during the 2027 financial year, followed by another 100 projected closures over the subsequent two years.

The impetus behind these widespread TFG store closures is a rapidly accelerating shift in consumer purchasing habits towards online shopping, which is outpacing traditional in-store sales growth. TFG's financial reporting indicates that its total sales experienced a modest increase of just 0.2%, reaching R23 billion over the recent period. In stark contrast, the group's online sales surged by 15.3% during the same timeframe, now accounting for a significant 15.9% of all merchandise sold by TFG.

This digital transformation is particularly pronounced within the African market, where TFG's online sales saw a remarkable 54.1% jump. This substantial growth was largely propelled by the success of the company's Bash online shopping platform. The increasing preference for digital transactions over physical retail visits is compelling retailers like TFG to re-evaluate and streamline their store networks, leading to the closure of underperforming locations and, consequently, potential job losses.

The ongoing trend of TFG store closures directly impacts retail jobs across South Africa, as each shuttered location invariably means staff positions are eliminated. Although TFG has not provided specific figures for the upcoming 180 closures, the pattern established by previous reductions suggests a significant human cost. The group's strategy is explicitly aimed at cutting costs and enhancing the overall efficiency of its extensive store network.

As consumers increasingly opt for online shopping rather than visiting brick-and-mortar establishments, the pressure mounts on physical stores to justify their existence. This dynamic forces retailers to make difficult decisions about locations that are no longer economically viable, placing workers in these stores at constant risk whenever new closure announcements are made. The group's proactive approach to shrinking its physical footprint is a direct response to this evolving retail landscape, prioritizing a more agile and cost-effective operational model.

Source: Original reporting via Scrolla