UK high street store owner plots 400 shop closures – closing sale launched | UK | News
The owner of fashion retailer Phase Eight may close up to 400 stores in a bid to cut costs and respond to changing consumer shopping habits, according to reports.
South African retail giant TFG, which owns the womenswear brand, has already announced plans to close more than 100 underperforming stores as part of a comprehensive restructuring programme.
But South Africa’s News24 newspaper reported that the company could eventually close as many as 400 stores across its vast portfolio as the continued growth of online shopping piles increases pressure on physical retail.
This news comes as Phase Eight grapples with its own challenges on the high street.
In its latest annual results, TFG said the brand’s performance had been “significantly affected over a number of years” by the decline of department stores.
When TFG acquired Phase Eight in 2014, approximately 70% of the brand’s sales came from department store locations. The collapse of Debenhams in 2021 dealt a significant blow to this model, causing many concessions and stores to close.
The retailer also warned that trading conditions in both London and Australia were “tougher than expected”.
Earlier this week, Phase Eight confirmed the closure of its St Andrews, Scotland store, where a closing sale is currently underway.
The fashion chain had previously closed its stores in Dundee and Perth.
TFG announced the potential closures as part of a broader cost-cutting drive following a sharp fall in profits. The group said online sales continued to grow, with digital revenue rising by more than 30% last year.
Meanwhile, traditional high street retailers are struggling with stagnant consumer spending, rising business costs and changing shopping habits as increasing numbers of shoppers turn to buying online.
Although TFG has not yet confirmed whether other stores in the UK will be closed, the company has said it will continue to review underperforming sites as part of its wider restructuring drive.
The retailer operates thousands of outlets across Africa, the UK and Australia, covering a broad portfolio of fashion, homeware and lifestyle brands.
