TFG sales in South Africa decline 3.5% as lower consumer spending

Fashion retailer TFG (TFGJ.J), which opens a new tab in South Africa, reported on Wednesday that sales for the 21-week period decreased by 3.5% due to pressure from rising living expenses and inflation on consumer demand for discretionary items.

By 13:27 GMT, the stock had dropped 3%.

Owner of the apparel stores Foschini and Markham, TFG, reported that in the 21 weeks leading up to August 24, sales in its Africa division, which accounts for 69.9% of the group, decreased by 1%. Pressure was further increased at the start of the year due to South Africa’s delayed winter season.

April and May average temperatures in South Africa were still much higher than typical, which caused consumers to postpone purchasing winter goods.

The company, which also has Hobbs and Whistles stores in the UK and Johnny Bigg and Connor menswear clothing brands in Australia, said that clearing excess inventory improved gross margins across all territories, resulting in a more than 100 basis point increase in group gross margin.

In rand terms, sales at its Australian and London operations decreased by 5.5% and 12.7%, respectively. Its London unit experienced inventory delays as a result of Red Sea shipping problems.

Prior to this on Tuesday, rival Woolworths (WHLJ.J), opens new tab, revealed a decline in full-year profits that was also caused by lower customer demand.

The corporation stated that the prognosis for the balance of its 2025 fiscal year will improve following the anticipated interest rate drop this month—the first in over two years.