Overview
- Reports over the weekend said TFG could close as many as 400 stores worldwide, while the company has formally committed to shutting more than 100 this year and told The Sunday Times it had identified 300 underperforming outlets.
- TFG’s online sales rose 31.7% and now make up about 14.8% of group retail revenue even as segmental EBIT before impairment fell roughly 65.4%, a collapse in profitability that prompted the review.
- The group describes store closures as a last resort and plans to ‘right-size’ its estate by reducing floor space, repurposing stores for online fulfilment and moving toward a more capital-light operating model.
- Phase Eight has already started closing some UK branches, with St Andrews holding a closing sale after earlier Dundee and Perth closures, and local redundancies and higher high-street vacancy are likely if more shops shut.
- TFG says the problems build on long-term trends such as the decline of department stores, weaker demand for occasion wear and disruption from a major cyber incident affecting an online concession partner, and investors will watch the next steps on trading improvements and store reviews.