By Ukumbi Afrika 
Johannesburg—South African fashion retailer TFG plans to close a further 180 stores over the next three financial years, as it seeks to improve profitability and reduce structural costs amid a rapid shift towards online shopping.
TFG, which owns brands including Foschini, Sportscene and Markham, said group sales increased just 0.2% to 23 billion rand ($1.43 billion) during the 21 weeks ended Aug. 22.
Its African business performed better, recording 3.4% sales growth during the period.
Store Portfolio Restructuring
The retailer closed 85 stores during the period that it deemed no longer economically viable, while opening 25 new outlets.
TFG expects approximately 80 more stores to meet its closure criteria during the 2027 financial year, followed by another 100 closures over the subsequent two financial years.
The company said the restructuring is designed to reduce costs, improve operational efficiency and strengthen the profitability of its store portfolio.
Online Sales Surge
TFG's shift towards e-commerce is becoming increasingly significant.
Group online revenue climbed 15.3%, accounting for 15.9% of total sales during the period.
The company's African online business recorded particularly strong growth, with sales surging 54.1%, helped by its Bash e-commerce platform.
Online sales in Africa rose to 10.5% of total sales, compared with 7.1% in the previous period.
The contrasting performance between physical stores and digital channels highlights the growing importance of e-commerce in TFG's strategy as consumer shopping habits evolve.
$1 = 16.0554 rand
Source: Reuters
Reporting: Nqobile Dludla
Editing: Jan Harvey