The Foschini Group (TFG) has reported a significant increase in sales, driven largely by its acquisition of UK-based fashion retailer White Stuff. The acquisition, completed in October 2024 through TFG’s UK subsidiary, added a well-established brand with over 100 standalone stores and approximately 50 concessions across the UK to TFG’s portfolio.
Founded in 1985, White Stuff is known for its distinctive range of clothing and accessories for women, men, and children. The brand’s inclusion has strengthened TFG’s international footprint and contributed meaningfully to its latest financial performance.
In its trading update for the 13 weeks ended 28 June 2025, TFG reported overall sales growth of 11.5%, reaching R14.4 billion. This performance was underpinned by the White Stuff acquisition, which provided a strong boost to the group’s UK operations.
Despite ongoing economic weakness in the UK, TFG London delivered a 57.7% increase in GBP sales, thanks to White Stuff’s contribution. However, excluding White Stuff, sales declined by 2.6% in GBP, reflecting the challenging retail environment. Notably, online sales accounted for 43.1% of TFG London’s total sales, underscoring the importance of digital channels in the region.
TFG Africa recorded a 9.9% increase in retail sales during the first eight weeks of FY2026. This growth was supported by:
- The shift of Easter holidays into April, boosting April trade.
- Strong winter sales in May, following a weaker 2024 base impacted by pre-election consumer caution.
However, June 2025 sales were flat compared to the prior year, as the overall retail market contracted by 4.0% (RLC data). The slowdown was exacerbated by the shift of school holidays into July, which triggered aggressive promotional activity across the sector.
Key highlights for TFG Africa:
- Store sales: Up 3.2%, supported by a net addition of 3 new stores, bringing the total to 3,617.
- Online sales: Up 40.2%, now contributing 7.0% of total sales, driven by the strong performance of Bash.
- Credit sales: Increased 9.3%, contributing 28.2% of total sales. The debtors’ book grew 9.0% to R9.1 billion, with new account acceptance rates improving to 20.3% (+0.5%).
Segment performance:
- Clothing: +4.2%
- Homeware: +8.5%
- Beauty: +24.5%
TFG Australia continued to face headwinds, with sales down 2.8% in AUD amid high inflation, elevated interest rates, and a highly promotional retail environment. Despite these challenges, recent two quarter-percent interest rate cuts suggest early signs of economic stabilization.
| Business Segment | Q1 FY2026 vs Q1 FY2025 |
|---|---|
| TFG Africa (ZAR) | 5.2% |
| TFG London* (GBP) | 57.7% |
| TFG Australia (AUD) | (2.8%) |
| Group (ZAR)* | 11.5% |
TFG acknowledged that global and domestic conditions remain volatile, citing uncertainty around proposed trade tariffs and subdued GDP growth of just 0.1% in Q1 2025. The group expects H1 FY2026 to be challenging, given slow June trade and a promotional winter season in South Africa.
Nevertheless, TFG remains committed to growth, with plans to open over 100 new stores in FY2026 while optimizing its existing portfolio.
The group expressed confidence in White Stuff’s performance, noting sales growth of 68.8% in GBP for the three weeks ended 19 July 2025. Excluding White Stuff, UK sales grew 6.3% during the same period. In contrast, Australian sales contracted by 4.1% over the same timeframe.
