Prominent South African retailer behind Foschini, Totalsports, and Jet takes a R1 billion hit

The Foschini Group (TFG) is bleeding money in its international operations, having recognised non-cash brand impairments totalling R1.02 billion in its 2026 financial year.

The first warning signs for this hit had already emerged in its 2025 financial year, when TFG’s Australian operations recognised a R61 million non-cash impairment against the Tarocash brand. In 2026, this brand was impaired by a further R176 million.

Alongside these brand impairments, TFG’s store-level physical and lease assets also took a hit, with the group recording R31 million in impairments on PPE and intangibles, as well as R43 million on its right-of-use assets. 

These impairments come amid a struggling performance for the South African retail giant, which has seen its bottom-line profitability erode drastically over the past five years.

TFG released its results for the year through March 2026 on Friday, 5 June, which revealed a mixed performance.

While the topline growth was impressive, with revenue up 7.21% to R67.07 billion, TFG’s bottom line suffered, with profit for the year down 58.73% to R1.32 billion.

Similarly, the retailer’s basic earnings per share fell by a notable 58.07% to 411.2 cents, while headline earnings per share plunged by 33.5% to 675.4 cents.

These declines were largely driven by the significant impairments TFG recognised in 2026, which included R687 million from Phase Eight in the UK, R176 million from Tarocash and R156 million from yd. in Australia.

The group’s bottom line was also impacted by acquisition costs over the year, with TFG having been on an aggressive acquisition spree for the past few years.

In 2022, TFG had 29 brands in its portfolio, primarily fashion and lifestyle brands. By 2026, its portfolio had expanded to 39 brands.

The brands TFG has added to its stable over the past five years were both domestic and international, with the latest being UK-based White Stuff in 2025 and 2026.

These acquisitions have helped to grow the group’s total sales, but its like-for-like growth remains weak.

For example, TFG London reported sales growth of 29.4% for 2026. However, excluding White Stuff, this segment’s sales were completely flat as it battled a weak retail trading environment.

The trading environment for TFG London was marked by a decline in reliance on department stores, weakness in occasion wear, and persistent high interest rates.

Bash is shooting the lights out

One shining light in TFG’s results was its remarkably strong Online segment, driven by the standout performance of its Bash platform.

Over the past five years, TFG’s e-commerce revenue has exploded, going from R4.4 billion in 2022 to R9.2 billion in 2026.

Online sales now contribute 12% of the group’s total sales, thanks to the success of its Bash platform.

Launched in 2023, Bash has become a significant catalyst for TFG’s e-commerce growth over the past few years.

In 2022, online retail turnover contributed only 3.1% to TFG’s Africa segment’s total turnover. By 2026, TFG Africa’s online sales jumped by 49.2%.

In the 2026 financial year, online sales contributed 8.2% of TFG Africa’s sales for the year, and reached 10% in the fourth quarter alone.

Even in some of the group’s struggling international operations, online sales have provided strong support for topline growth.

TFG London has historically relied heavily on e-commerce, particularly after the easing of Covid-19 restrictions in 2022, when online retail turnover accounted for a notable 45.2% of the segment’s total retail turnover.

In 2022, TFG London’s e-commerce revenue stood at R2.8 billion. In 2026, it surpassed R5 billion.

Only TFG Australia has not experienced the same e-commerce boom. In rand terms, e-commerce revenue for the Australian segment has remained relatively flat over the past five years, going from R633 million in 2022 to R636 million in 2026.