Fashion retailer TFG has announced plans to close 180 more stores in its Africa portfolio over the next three financial years, as part of a strategy to improve profitability amid rising online sales.
The company, which owns Phase Eight, Hobbs and Inside Story in the UK, had already closed 85 stores in its Africa portfolio that were no longer “economically viable” in the 21 weeks ended August 22. It opened 25 new stores over the same period.
Closure schedule
TFG said 80 stores are expected to close during the 2027 financial year, while 100 stores are projected to shut over the following two financial years.
“This consolidation is expected to enhance both profitability and return on capital,” the company said in a trading update.
Global trading conditions
Globally, TFG said consumers are expected to remain under pressure in the near term. Management plans to continue to focus on growing online penetration.
TFG London was impacted by the continued weak UK economy, with the company saying the backdrop continues to be heavily promotional driven. In Australia, the arm faced increasingly difficult trading conditions, with high inflation and interest rates impacting the consumer.
