The Foschini Group, proprietor of the JET retail chain, has identified South Africa’s escalating online gambling addiction as a more substantial peril to its operations than the competitive pressure from Chinese fast-fashion giant Shein. Chief executive Anthony Thunström conveyed this assessment to stakeholders during a recent financial briefing, emphasising that while the company is successfully capturing market share in women’s apparel amid Shein’s expansion, the pervasive issue of gambling is diverting consumer expenditure and undermining broader economic stability. As reported by News24, Thunström described gambling as one of the most significant hazards confronting the entire economy, potentially eclipsing external retail rivals in its impact on disposable income.
This perspective arises amid TFG’s interim financial disclosures for the period ending September 2025, where the group recorded a 12.2 per cent revenue increase to R31.4 billion, bolstered by the acquisition of UK-based White Stuff and robust online sales growth of 55.3 per cent. Nonetheless, attributable profits declined to R944 million from R1.198 billion, with headline earnings per share dropping 21.3 per cent to 292.6 cents, prompting a reduced interim dividend of 130 cents per share. The company attributed these setbacks to subdued demand, elevated costs, and aggressive discounting on seasonal stock, which negated cost containment efforts.
In South Africa, constituting two-thirds of total sales, revenues grew by 5.3 per cent, with apparel up 4.2 per cent, homeware 9.3 per cent, and beauty surging 23.6 per cent. However, Thunström highlighted that consumer spending is being siphoned by online betting platforms, exacerbating financial strain on households and reducing discretionary outlays on retail goods. According to Instagram’s Business Day post, TFG is countering Shein’s influence by enhancing its digital presence, with platforms like Bash achieving 40.2 per cent growth, yet gambling’s societal toll presents a more insidious challenge.
Thunström’s remarks underscore a growing concern within the retail sector about gambling’s economic repercussions, particularly as platforms proliferate and target vulnerable demographics. As noted by LinkedIn’s Khaya Dlanga, addiction has led to severe personal and familial distress, with instances of debt-related threats amplifying the issue’s gravity. TFG’s London operations excelled with 69 per cent growth in pound terms, driven by White Stuff’s 12.5 per cent sales rise, while Australia saw a 0.5 per cent dip amid tightened consumer belts.
Looking ahead, TFG anticipates persistent market headwinds but remains focused on operational fortitude, strategic capital deployment, and digital innovation. Thunström stressed actions to optimise expenses, refine store portfolios, and expand categories like womenswear and beauty. As detailed by Moneyweb, the group’s ambitions abroad contrast with domestic challenges, where gambling’s drain on wallets could hinder recovery more than international competitors like Shein. This sentiment echoes broader industry analyses, such as Econometrix reports on job losses in retail, underscoring the need for regulatory interventions to curb gambling’s societal costs.