TFG Plans Store Closures and Spending Cuts as Profit Drops
South African fashion retailer TFG plans to close over 100 underperforming stores and reduce capital expenditure following a 33.5% drop in full-year profit. The group cited weak consumer spending and international trading challenges as it moves to simplify its business structure and prioritize cash flow.
Insights:
South Africa retailer TFG will close 100 stores and cut capital expenditure by 600 million rand after full-year profit dropped 33.5%. Operating profit fell 36% to 3.9 billion rand as weak peak-season sales led to inventory clearing and margin pressure. Investors are weighing a shift toward capital-light digital growth against deteriorating demand in the United Kingdom and Australia.
