South Africa-based retail group TFG said it plans to “accelerate right-sizing” Phase Eight’s store estate and cost base over the next 12 months, signalling a fresh wave of closures on the UK high street. The business has not confirmed how many locations are at risk or which sites are under review, but underperforming branches are firmly in the firing line.
TFG blamed years of structural change in department store retailing for Phase Eight’s weaker performance, noting that concessions once accounted for around 70% of the brand’s sales when it acquired the business. The continued decline of department stores has left the occasionwear specialist exposed to falling footfall and a tougher trading environment.
The restructuring is already being felt in Scotland, where Phase Eight’s St Andrews store has begun a closing-down sale following earlier closures in Dundee and Perth. The moves underline how mid-market fashion fascias are reassessing regional footprints, prioritising larger cities and online channels over smaller high street locations.
TFG has not ruled out further Scottish closures as it reviews the wider portfolio, though stores in major cities such as Edinburgh, Glasgow and Aberdeen remain open for now. The uncertainty will concern local shoppers, as well as landlords in secondary towns who are already grappling with rising vacancy rates.
TFG booked a £30m impairment charge against the Phase Eight brand in its latest full-year results, reflecting reduced long-term cash flow expectations from the business. Across TFG London – the division that includes Phase Eight alongside Hobbs, Whistles, White Stuff and Inside Story – reported sales rose 29.4% to £488m in the year to 31 March, boosted by the acquisition of White Stuff.
Stripping out White Stuff, however, paints a far bleaker picture: TFG London’s sales were broadly flat at £296m, with gross profit down 6.5% and trading expenses up 5.6%. Earnings before interest and tax for the division, excluding the Phase Eight impairment and White Stuff acquisition costs, slumped 65.4% from £26m to £9m, underlining how legacy brands have struggled against softer occasionwear demand, weaker department store trading and disruption from a cyber incident at a key online concession partner.
TFG London has been actively reshaping its store network, opening 48 outlets and closing 98 during the year to end on 649 locations. The net reduction underscores a broader strategy of exiting marginal sites while backing formats and fascias that can still deliver returns in a high-cost environment.
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Management warned that UK performance will remain heavily reliant on tight margin control and disciplined cost management as shoppers continue to face elevated living costs and weak consumer confidence. For Phase Eight, that means more pressure to rationalise space, lean harder on e-commerce and focus on locations with proven demand for its occasion-led offer.
Phase Eight’s restructuring adds to a deepening pattern of fashion and variety retailers trimming bricks-and-mortar portfolios in 2026, from Poundland and River Island to other mid-market chains. For high streets in smaller towns, the potential loss of another long-standing fashion name risks further erosion of clothing choice, particularly for customers seeking mid-priced occasionwear.
At the same time, TFG’s strategy reflects the new reality for brand owners: fewer, more productive stores, a heavier reliance on online, and a continued shift away from department store concessions as a primary route to market. For local economies – particularly in Scotland’s secondary cities and university towns – the key question is how quickly new operators or independent retailers can move into vacated units to prevent long-term gaps in the streetscape.
