Foschini Group Reports Slowing Sales in Australian Market Amid Economic Uncertainty

The Foschini Group, a South African-based owner of several retail brands including Tarocash, has reported a decline in sales for its Australian market. The company noted that its Australian business is facing a tough trading environment due to high inflation and elevated interest rates.

Sales for the 21 weeks ending August 22 were down 4.7 per cent, with like-for-like sales decreasing by 4.1 per cent. The Foschini Group attributed this decline to the repositioning of the Tarocash brand, as well as a highly promotional market.

Despite the challenges in Australia, which accounts for around 13.5 per cent of the group's total revenue, The Foschini Group reported a total sales lift of 0.2 per cent to R23 billion (approximately $1.99 billion AUD) for the period. This is equivalent to a 2 per cent increase in constant currency.

The company also announced plans to close around 100 stores across its Africa segment over the next two years, including approximately 80 in FY27. Globally, The Foschini Group expects consumer pressure to persist in the near term, prompting management to maintain a disciplined approach to credit extension and space optimisation.