The Foschini Group has confirmed plans to close c.100 underperforming Phase Eight stores as it looks to cut costs and remain ‘resilient in a prolonged period of constrained consumer demand’.
FY2026 sales for TFG London, excluding White Stuff were flat, with performance in the legacy portfolio impacted by weakness in occasion-wear categories, softer department store trading and disruption arising from a significant cyber incident affecting a key online concession partner.
TFG CEO Anthony Thunström said: “FY26 was a challenging year as weaker consumer demand and margin pressure impacted profitability across the Group. While these conditions were largely outside of our control, our response was not. We acted decisively to reduce costs, manage inventory, preserve cash and strengthen the resilience of the business.”
“We have invested significantly over a number of years to build scaled retail, digital and logistics platforms that position us well for the future. As online penetration continues to grow and our omni-channel capabilities scale, we believe we are increasingly able to drive growth through a more capital-light model while remaining focused on improving profitability and returns.”
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