Cosatu has called on The Foschini Group (TFG) to reconsider its decision to cease operations at 280 African outlets over the next three financial years, saying this would relegate many workers to the unemployment lines.It said the group had cited a list of reasons for the move, including the surge in online shopping, which had surpassed the performance of its physical stores.TFG owns popular clothing and retail brands including Foschini, Sportscene and Markham, Total Sports, Fabiani, Exact, Sterns, @home and Street Fever, among others.The group’s TFG Africa operations account for 3,432 outlets in South Africa, Lesotho 19, Eswatini 21, Zambia 28, Namibia 100 and Botswana 64. In its integrated annual report for the year ended March 31 2026, TFG said group revenue grew 7.2% to R67.1bn, while operating profit before brand impairments and acquisition costs declined 22.1% to R4.9bn. Headline earnings declined by 33.5%, as did the total dividend, by 30.8%. TFG’s decision comes after retailer Edgars, once part of Edcon, fell into financial trouble and entered business rescue in 2020. It was acquired by Retailability, which has since streamlined stores, refocused the brand on fashion and beauty, and retained its presence in major malls. It is vital TFG demonstrates solidarity towards its workforce, engages in good faith and finds alternatives to store closures. Jumping to hasty decisions is not an option when people’s livelihoods are at stake— CosatuAt its peak, Edgars had more than 200 large format stores across South Africa, ranging from 3,000m² to 8,000m² Today, stores are smaller — at about 1,500m² to 2,000m² — and focused on fashion, footwear and beauty, with layouts designed for efficiency rather than size. Cosatu said it wanted TFG to “earnestly consider the impact of store closures on its staff following the announcement to cease operations of 280 African outlets over ‌the next three financial years”. “The fashion retailer has already commenced the process with closures finalised this year. The group has cited a list of reasons behind the move, including the surge in the online market surpassing the performance of its physical stores. The country is confronted by stagnant economic growth, growing at a mere 0.5% quarter-on-quarter in the first quarter of 2026. This has undermined efforts to generate jobs and tackle our stubbornly high unemployment rate of 43.8%,” Cosatu said. “These planned closures come at a time when artificial intelligence and automation are contributing to the drivers of retrenchments — particularly in banking, logistics, mining, and manufacturing sectors. Often workers are left without adequate compensation or measures to accommodate them.” The ANC-aligned labour federation said TFG’s popular brands “are hard-working individuals. The business is where it is today largely due to the blood and sweat of its staff. The billions it accumulates in sales are due to the toil of workers from operating sewing machines to the sales consultants at stores”. Cosatu said it would work with its affiliates to “stop this devastating blow to workers across the African continent and to find progressive alternatives. It is vital that TFG demonstrates solidarity towards its workforce, engages in good faith and finds alternatives to store closures. While these conditions were largely outside of our control, our response was not. We acted decisively to reduce costs, manage inventory, preserve cash and strengthen the resilience of the business— Anthony Thunström, TFG CEO“Jumping to hasty decisions is not an option when people’s livelihoods are at stake. Throwing workers in the devastating unemployment den should not be the pinnacle of decision making and solution-finding processes. Prioritising sales at the expense of workers is out of the question”. In a media statement on June 5, TFG CEO Anthony Thunström said the group was focused on strengthening business resilience in the face of expected continued adverse trading conditions. “FY26 was a challenging year as weaker consumer demand and margin pressure impacted profitability across the group. “While these conditions were largely outside of our control, our response was not. We acted decisively to reduce costs, manage inventory, preserve cash and strengthen the resilience of the business.” He said the group had “invested significantly over a number of years to build scaled retail, digital and logistics platforms that position us well for the future. As online penetration continues to grow and our omni-channel capabilities scale, we believe we are increasingly able to drive growth through a more capital-light model while remaining focused on improving profitability and returns”. The South African macroeconomic environment remained challenging, with subdued economic growth and pressure on consumer disposable income continuing to constrain demand. The retail group has been approached for comment, which will be added once received.Business Day