TFG takes on Shein, Amazon with faster delivery in South Africa

Feyisayo Ajayi -
Key Points
  • TFG leverages local logistics to challenge global e-commerce giants with faster delivery times in South Africa. 
  • TFG’s Bash platform offers same-day and next-day delivery, gaining an edge in a competitive market. 
  • Under Anthony Thunstrom, TFG’s revenue surged 19.4% in 2023, with international expansion through acquisitions and partnerships.

The Foschini Group (TFG), a retail conglomerate headquartered in Cape Town and led by South African executive Anthony Thunstrom, is enhancing its e-commerce capabilities with faster delivery, competing with global players Amazon, Shein, and Temu in the growing South African online retail market.

Leveraging an extensive logistics network, TFG aims to slash delivery times, setting itself apart from rivals whose shipments to South Africa often stretch to 10 days. In a Bloomberg interview, Thunstrom underscored TFG’s local-first strategy. “South Africa may have lagged in e-commerce uptake, but once the wave begins, the growth is almost inevitable,” he noted.

South Africa’s e-commerce landscape has been turbulent. Jumia Technologies AG recently announced plans to close its South African subsidiary, Zando, by year-end, citing economic headwinds and mounting competition from cost-conscious e-tailers like Shein and Temu. Similarly, Superbalist, formerly part of Takealot, was sold to a consortium in September amid financial and market pressures.

TFG's Bash platform: A delivery powerhouse in tough times

TFG’s Bash platform, offering same-day and next-day delivery, is a standout in a sector where delivery fees, payment obstacles, and economic pressures weigh on businesses and consumers alike. TFG’s logistical strength and widespread physical presence enable it to keep delivery times low, bolstering its competitive edge.

Operational hurdles remain, with frequent power and water shortages posing risks. TFG has responded by investing in solar power and water storage solutions to ensure business continuity. “We’ve set up contingency plans to provide water at stores, safeguarding operations and supporting our employees in high-need areas,” Thunstrom said.

The 2020 acquisition of the Jet brand has been pivotal, attracting budget-conscious consumers grappling with inflation and rising living costs. Thunstrom reflected on the addition, noting, “Building this from the ground up would have taken over a decade; it’s been a highly profitable boost for us.”

TFG's diverse portfolio drives growth

TFG operates a diverse retail portfolio that includes fashion, jewelry, cosmetics, sporting apparel, electronics, homeware, and furniture, with over 4,600 stores across five continents. Under Anthony Thunstrom, TFG's revenue rose 19.4 percent in 2023, showcasing strategic growth in the South African market.

TFG’s international ambitions are also expanding. The recent acquisition of UK retailer White Stuff adds to its European footprint, while a partnership with JD Sports Fashion enhances its position in the resilient sportswear sector. The group now manages 35 brands across 23 countries. 

For the half-year ending September 30, 2024, TFG reported a 2.5 percent profit increase to R12.8 billion ($706 million), though revenue slipped 1.4 percent to R28 billion ($1.5 billion), reflecting economic challenges and intensified global competition.