South African fashion retailer TFG has been preparing for a significant reduction in its physical store network. They have announced plans to close a further 180 outlets over the next three financial years as they adapt to the fast and rapid growth of online shopping.
The move shows the growing transformation that is taking place in the retail industry. It shows how traditional fashion businesses are increasingly reassessing the role of physical stores as consumers turn to digital platforms. TFG, whose portfolio includes well-known brands. Brands such as Foschini, Sport Scene and Markham, who belong to this group, said the closures form part of a much larger effort which was made to improve profitability and make its store network more efficient.
The company has already started to reshape its physical footprint. During the 21 weeks ending August 22, TFG closed 85 stores that it considered no longer economically viable. However, the closures took place as 25 new outlets were opened. The retailer expects 80 additional stores to meet its closure criteria during the 2027 financial year, followed by another 100 over the subsequent two years.
The announcement comes even though there was continued growth in parts of TFG’s business. Group sales climbed the charts by 0.2% to 23 billion rand during the latest reporting period, while its African operations recorded sales growth of 3.4%. However, the figures also clearly demonstrate the uneven trading environment facing retailers, where companies are balancing modest growth with the need to control costs and improve returns from their existing operations.
Digital commerce has come up as one of the strongest areas of growth. TFG’s group online revenue increased by 15.3% during the 21-week period and accounted for 15.9% of total sales. The expansion was particularly noticeable in Africa. In the region, online sales rose by 54.1%. The growth was driven largely by the company’s Bash e-commerce platform. The platform increased its contribution to African sales from 7.1% in the previous period to 10.5%.
The shift toward digital retail has been building for some time. In its financial results for the year ended March 2026, TFG reported that group online sales had grown by 31.7% and represented 14.8% of total retail sales. Its African online business had also grown forcefully, supported by the continued development of Bash. These figures suggest that the latest store closures are part of a restructuring strategy that is much longer term rather than a sudden reaction to changing consumer behaviour.
Physical retail is not disappearing from TFG’s strategy completely. The company is going to continue to open stores where opportunities are considered commercially viable. This clearly shows that its approach is focused more on reshaping its network rather than simply abandoning traditional retail altogether. The planned closures are primarily aimed at removing weaker locations while allowing the business to concentrate on more productive stores and its expanding online operations, as that is what gets consumers’ attention more.
The development also highlights the much larger challenge facing South Africa’s fashion industry. Consumers are able to increasingly compare products, prices and brands online. This forces retailers to offer a seamless experience across both digital and physical channels. Other major retailers are also investing heavily in e-commerce, with Woolworths recently reporting strong online growth within its business.
For TFG, the next three years will therefore represent a period of transition. Closing 180 additional stores is a substantial adjustment, but the retailer appears to be positioning itself for a market in which success will depend less on the size of a physical footprint and more on the ability to combine efficient stores with a strong digital presence.
As online shopping continues to reshape and redefine the habits of consumers, TFG’s restructuring could offer a glimpse into the future of fashion retail in South Africa, where fewer underperforming stores, greater investment in technology and an increasing reliance on digital platforms are expected to drive growth.
