The owner of fashion chain Phase Eight could close up to 400 stores as it looks to cut costs and adapt to changing shopping habits, according to reports.
TFG, which owns the womenswear retailer, has already confirmed plans to shut more than 100 underperforming stores as part of a major restructuring programme.
However, South Africa’s News24 reports the retail giant could eventually close as many as 400 stores across its wider portfolio as online shopping continues to grow and physical stores come under increasing pressure.
The development comes as Phase Eight faces its own challenges on the high street.
In its latest annual results, TFG said the brand’s performance had been “heavily impacted over several years” by the decline of department stores.
When TFG acquired Phase Eight in 2014, around 70% of the brand’s sales came through department store locations. The collapse of Debenhams in 2021 dealt a significant blow to that model, forcing many concessions and stores to close.
The retailer also warned that trading conditions in both London and Australia had been “more challenging than expected”.
View 2 ImagesWestfield, London England – February 2024, Phase Eight External Store Sign (Photo by Peter Dazeley/Getty Images)
Earlier this week, Phase Eight confirmed the closure of its store in St Andrews, Scotland, where a closing down sale is already under way.
The fashion chain has also previously shut stores in Dundee and Perth.
TFG revealed the potential store closures as part of a wider cost-cutting drive after reporting a sharp drop in profits.
The group said online sales continue to grow strongly, with digital revenue rising by more than 30% over the past year.
At the same time, traditional retailers have been grappling with weaker consumer spending, rising operating costs and changing shopping habits as more customers buy online.
While TFG has not confirmed whether any additional UK stores will be affected, the company said it would continue reviewing underperforming locations as part of its restructuring plans.
The retailer operates thousands of stores across Africa, the UK and Australia through a range of fashion, homeware and lifestyle brands.
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