The retailer's online platform Bash contributed significantly to TFG Africa's sales.
TFG’s online platform, Bash has boosted the Group’s sales. Picture: Bash Website
The Foschini Group (TFG) has closed 178 underperforming stores, bringing its total footprint across three continents to 4 807 operating stores, as its online platform, Bash, drives sales.
The clothing and fashion retail giant operates in Africa, London and Australia. Its biggest market is Africa.
TFG owns brands such as Foschini, Markham, Fabiani, G-Star Raw (in Africa only), Sterns, @home, Jet, Whistles, Hobbs, White Stuff, Connor, Johnny Bigg, Tarocash and more.
TFG’s performance
According to the group’s financial results for the half-year ended 30 September 2026, TFG’s revenue increased by 0.1% to R31.4 billion, while sales declined by 0.4% to R29 billion, but grew by 1.4% in constant currency.
Simply put, TFG’s sales grew when removing the distorting effects of foreign exchange rate fluctuations.
The clothing and fashion retail giant’s gross profit declined by 1.3% in rand terms, and operating profit fell 6.5% to R2.1 billion. The main difference between gross profit and operating profit is which expenses a company subtracts from total revenue.
TFG Africa shooting stars
According to the results, TFG Africa’s operating profit increased by 2.7% and online sales grew by 53.3%, driven by Bash. Bash in the continent contributes 10.9% of sales, up from 7.4% in the same period in 2026.
“In TFG Africa, we made clear progress against our four key priorities, as well as growing sales, operating profit and market share despite a constrained consumer environment,” said TFG CEO Anthony Thunström.
The four key priorities include simplifying the business and reducing costs; closing underperforming stores; leveraging Bash; and strengthening fintech and building out credit.
In Africa, the retailer has closed 120 stores during the period, largely at lease expiry, reducing trading space by 2.6%. The retailer is planning to close 60 to 80 more stores during the remainder of the year. TFG Africa now trades from 3 585 stores in six countries.
“Consumer sentiment and discretionary spend in South Africa remained subdued as higher fuel prices and the resumption of interest rate increases weighed on disposable income.”
London might be in trouble
According to the results, sales in TFG London declined by 2.2%, as trade continues to be impacted by the prolonged weakness in the UK economy. Store sales fell 0.6%, while online sales fell 4.2% and now account for 42.6% of total TFG London sales.
The retailer closed 28 stores and opened 19 during the period. London now has 640 TFG stores in nine countries.
Gross margin decreased by 10 basis points, to 64.0%.
“Management remains focused on the protection of operating profit margin through cost containment and reduction initiatives, with trading expenses held at prior period levels,” said Thunström.
Spending in Australia under pressure
According to the results, sales in Australia contracted by 4.4% as discretionary spend remained under significant pressure across the market. Like-for-like sales contracted by 3.6%.
Gross margin improved by 40 basis points to 65.3%.
TFG in Australia closed 30 stores during the period and opened 11. TFG now operates 582 stores across three countries. Online sales contributed 7.6% of total TFG Australia sales.
“Trading expenses were tightly held, increasing by just 0.5% compared to the prior period, but this was insufficient to avoid significant operational deleverage,” said Thunström.
Looking ahead
Thunström noted that the operating environment remains uncertain due to ongoing geopolitical tensions.
“With higher fuel prices and the resumption of interest rate increases in South Africa and Australia, consumer confidence and spending are expected to remain constrained for the foreseeable future across all three territories. The Group continues to prioritise the levers within its control.”
He said the group enters the second half with a leaner cost base, a smaller store footprint, strong online momentum, lower inventory and reduced net debt.
“The Group remains focused on executing its priorities, prudent capital allocation and on capital-light growth through its digital channels.”
