South African retail giant to shut 280 stores as online shopping surges

Johannesburg – The Foschini Group (TFG) is set to close about 280 stores across Africa by 2029 as the South African retail giant shifts its focus towards online shopping amid changing consumer behaviour and pressure on traditional brick-and-mortar stores.

According to BusinessTech, TFG has already closed 85 stores that it considered no longer economically viable in the 21 weeks to 22 August 2026. This was partly offset by the opening of 25 new outlets.

The group plans to close about 80 additional stores in the financial year ending March 2027, followed by a further 100 closures in each of the subsequent two financial years.

The planned consolidation comes as TFG’s physical retail operations struggle to match the growth of its digital business. Group sales increased by only 0.2% to R23 billion during the 21-week period, while online sales surged 54%.

TFG’s online business is being driven by its Bash platform, which brings together brands including Sportscene, Totalsports, Markham, Fabiani, @home, American Swiss and Exact. Online sales now account for almost 16% of group sales, up from about 14% a year earlier.

A disciplined approach

The retailer said the difficult consumer environment was also influencing its strategy.

“Globally, the consumer is expected to remain under pressure in the near term,” TFG said, according to Retail Insight Network, adding that it would maintain “a disciplined approach to credit extension and space optimisation, while continuing to focus on growing online penetration”.

TFG’s decision comes as South Africa’s wider retail market undergoes a rapid shift towards e-commerce. Research by World Wide Worx, Mastercard, Peach Payments and Ask Afrika estimates that South Africans will spend R159 billion online in 2026, representing growth of 22.5% and about 10% of national retail turnover.

TechCentral notes that online retail is growing substantially faster than the broader retail sector, while consumers are increasingly spending more online even as the number of online shoppers grows more slowly.

Digital operations 

The shift is already benefiting other digital operations. Checkers Sixty60 sales rose 34.5% to R25.5 billion in the year to June 2026, while TFG Africa’s online sales increased 49.2% and reached 8.2% of divisional sales, according to the World Wide Worx research.

TFG operates more than 3,400 stores in South Africa, meaning the planned closures represent a significant restructuring of its physical footprint rather than an exit from the South African market.

The retailer’s strategy reflects a broader challenge facing South African retailers: physical stores remain important, but increasingly more consumers are choosing convenience, competitive pricing and accessibility offered by online platforms.