The owner of fashion retailer TFG is reportedly considering the closure of up to 400 stores across its retail portfolio as it seeks to reduce costs and adapt to changing consumer shopping habits.
TFG, which owns womenswear brand Phase Eight, has already confirmed plans to shut more than 100 underperforming stores as part of a major restructuring programme.
According to reports, the South African retail group could eventually close as many as 400 locations as online shopping continues to gain market share and traditional high street stores face increasing challenges.
The move comes as Phase Eight continues to battle declining footfall and structural changes in the retail sector.
In its latest financial results, TFG said the brand had been “heavily impacted over several years” by the decline of department stores, which were once a key part of its business model.
When TFG acquired Phase Eight in 2014, around 70% of the brand’s sales were generated through department store concessions. However, the collapse of Debenhams in 2021 significantly disrupted those operations, leading to the closure of numerous concessions and stores.
The retailer also warned that trading conditions in both London and Australia had been “more challenging than expected”.
Earlier this week, Phase Eight confirmed the closure of its store in St Andrews, where a closing-down sale is already under way.
The fashion chain has also previously closed stores in Dundee and Perth as part of efforts to streamline its operations.
The potential closures form part of a broader cost-cutting strategy after TFG reported a significant decline in profits.
Despite difficulties on the high street, the group said online sales continue to perform strongly, with digital revenue increasing by more than 30% over the past year.
Like many retailers, TFG is facing a combination of rising operating costs, weaker consumer spending and a continued shift towards online shopping.
While the company has not confirmed whether further UK stores will be affected, it said it will continue reviewing underperforming locations as part of its ongoing restructuring plans.
TFG operates thousands of stores across Africa, the UK and Australia through a range of fashion, homeware and lifestyle brands.