South Africa’s The Foschini Group (TFG) has reported a 21.3% decline in half-year profit, citing softer consumer spending, higher interest rates, and persistent power supply disruptions that have dampened retail performance.
According to the company’s interim results released on Friday, headline earnings per share, the main profit measure in South Africa, fell to 429.5 cents for the six months ending September 2025, down from 545.6 cents a year earlier. As reported by Reuters, the retailer’s revenue remained largely flat at R26.7 billion, as growth in its international businesses offset sluggish local sales.
TFG, which owns brands such as Markham, Foschini, and Exact, said South Africa’s tough macroeconomic environment continued to pressure consumers’ disposable income. The company highlighted that persistent load-shedding and high credit costs have curtailed discretionary spending across its apparel and homeware divisions.
Chief Executive Anthony Thunström said TFG would continue focusing on digital innovation and supply chain efficiency to navigate current market conditions. “While the environment remains challenging, we are confident in our long-term strategy and our ability to sustain profitability through efficiency and diversification,” he stated.
Industry analysts note that South African retailers have faced mounting operational costs in recent years, with figures from Statistics South Africa showing retail sales growth slowing to 1.1% in the second quarter of 2025. TFG said it expects gradual improvement in the second half as inflationary pressures ease.
