"People will lose jobs": SA concerned as marketing expert explains closure of Foschini stores

Panic recently spread across social media following reports that the Foschini Group (TFG) was shutting its doors. Marketing expert Lebo Lion took to TikTok to debunk the rumors, explaining that the retail giant is actually trimming underperforming assets to prioritize its digital future.

The group has reportedly targeted over 300 loss-making stores for closure after operational costs began to outpace sales growth. By the conclusion of the 2026 financial year, approximately 100 of these locations had already been shuttered as part of the massive restructuring.

A Diverse Brand Portfolio

Lebo Lion clarified a common misconception among shoppers, noting that the Foschini store is just one part of a vast conglomerate. TFG manages a massive stable of brands including Markham, Sportscene, Total Sports, Exact, The Fix, @home, and American Swiss.

Beyond its local footprint in South Africa, the retail powerhouse also maintains significant operations in Australia. The current strategy involves weeding out the specific physical branches that are no longer profitable across these various brands.

The Rise of E-Commerce

While physical storefronts are disappearing, TFG’s online presence is thriving. The group's e-commerce platform, Bash, saw a staggering 49% year-on-year growth, matching the profit margins of traditional brick-and-mortar stores with significantly lower overhead costs.

The shift toward online retail allows the company to pivot quickly to new trends and limits its exposure to the volatility of physical marketplace management. However, this digital migration has left many South Africans worried about the future of the retail workforce.

Concerns Over Job Security

The primary concern for citizens remains the fate of store assistants and floor staff. Lebo Lion questioned what roles will be left for these workers as brands move away from face-to-face service, suggesting the sector faces a massive need for adaptation.

Public reaction has been polarized, with some consumers praising the convenience of the Bash platform while others lament the loss of the physical shopping experience and the looming threat of unemployment for thousands of retail employees.