Major South African retailer taking up market share

The Foschini Group (TFG) experienced a strong first quarter of its 2026 financial year, gaining market share in South Africa while taking hits from its international businesses.

TFG is one of South Africa’s biggest clothing retailers and owns beloved brands like @home, Jet, American Swiss, Sportscene, and Total Sports. It operates in Africa, the UK, and Australia.

The retailer released a trading update for the 13 weeks ended 28 June 2025, which revealed mixed performances across TFG’s business segments.

TFG operates through three geographic segments – TFG Africa, its biggest business, TFG London, and TFG Australia.

In the first quarter of the retailer’s 2026 financial year, TFG grew group sales by 11.5% R14.4 billion.

This was driven largely by strong sales growth in its TFG Africa segment, which increased sales by 5.2% in the quarter.

This solid growth was boosted by a strong performance in online sales, which grew by 40.2%, now contributing 7% to tales sales in this segment.

Store sales rose by 3.2%, complemented by a strong online sales performance. This segment’s store network expanded by a net three stores, bringing TFG Africa’s total store count to 3,617.

TFG Africa’s beauty category was also a standout performer in this quarter, recording sales growth of 24.5%.

Positively, TFG also recorded market share gains of 50 basis points in South Africa over this quarter, as the group outperformed total market retail sales growth according to the Retail Liaison Committee.

While TFG London recorded sales growth of 57.7% in GBP terms, this figure was skewed by the retailer’s acquisition of White Stuff in October 2024. 

Excluding White Stuff, TFG London’s sales declined by 2.6% in GBP, and overall group like-for-like sales grew by a more modest 2.5% in rand terms. TFG said this segment was impacted by the continued weak UK economy.

The retailer also took a hit from its TFG Australia business, which faced difficult trading conditions as sustained high inflation and interest rates weighed on Australian consumers.

Sales in this segment were 2.8% lower in Australian dollar terms, with a mixed performance throughout the period in a highly promotional market. 

Looking forward, TFG said it is confident that TFG Africa will be able to sustain gross margin and cost controls amid challenging global and domestic business conditions.

The retailer expects to open over 100 new stores in the 2026 financial year.

In addition, the group said that while the UK economy remains under pressure, it is encouraged by the continued strong performance of White Stuff. 

TFG is also optimistic about a potential improvement in Australia, saying the economy appears to be stabilising with two quarter-percent interest rate reductions in recent months.