TFG and other store closures: What happens to your lay-by, vouchers & returns?

If your favourite clothing store closes, you could be left wondering what happens to the money you have already paid towards a lay-by, whether your gift voucher is still valid or where to take a faulty item.

These are increasingly important questions for South African shoppers as TFG, the retail group behind Foschini, Markham, Sportscene, Totalsports, Exact, @home and American Swiss, prepares for further store closures.

According to Moneyweb, TFG closed 85 stores across Africa in the 21 weeks to 22 August 2026, citing their lack of economic viability. The group also opened 25 new stores during the same period.

TFG indicated that approximately 80 additional stores could meet its closure criteria in the financial year ending 31 March 2027, followed by around 100 in each of the next two financial years. The specific stores earmarked for closure were not named.

While the changes may affect where customers shop, a store closing does not automatically erase your consumer rights. South Africa’s Consumer Protection Act (CPA) provides safeguards for lay-by agreements, gift vouchers and defective goods.

Here’s what shoppers need to know:

Putting an item on lay-by allows you to pay for it in instalments before taking it home. But what happens if the branch holding your purchase shuts its doors before you have finished paying?

Section 62 of the Consumer Protection Act protects consumers who purchase goods through lay-by agreements.

The law states that each instalment you pay remains your property until the goods are delivered to you. The goods also remain at the retailer’s risk until delivery.

If you have completed your payments but the retailer cannot supply the goods, you are entitled to choose between receiving comparable or better goods in the same quantity, or getting your money back.

Depending on the circumstances, the refund may include interest at the prescribed rate or twice the amount paid. The applicable remedy depends on whether the retailer’s failure to deliver was beyond its control.

What should you do if your branch is closing?

• Keep your lay-by agreement and every payment receipt.
• Contact the retailer and ask in writing where your lay-by will be held.
• Confirm which branch will handle your collection or refund.
• Keep copies of all correspondence and payment confirmations.

You can also cancel a lay-by before completing payment. However, a retailer may charge a cancellation penalty only if you were informed of it before entering the agreement. The regulations cap this penalty at 1% of the full purchase price.

The penalty does not apply if you cannot complete the payments because of death or hospitalisation. Similar provisions apply if you fail to complete payment within 60 business days after the agreed completion date.

A store closure can make an unused gift voucher feel like money at risk, particularly if you received it as a birthday present or bought it for someone else.

Section 63 of the Consumer Protection Act sets out how long prepaid vouchers, cards and credits remain valid.

Generally, a voucher remains valid until its value has been used or three years have passed since it was issued, whichever happens first. A retailer may agree to a longer validity period, but cannot impose a shorter one.

Closing a particular branch does not, by itself, change these rules.

If your voucher belongs to a retail brand with other branches, contact the company to establish how you can redeem it. If the retailer refuses to honour a voucher, keep the original voucher and proof of purchase, then request an explanation in writing.

Imagine buying a pair of shoes, a household appliance or an item of clothing, only to discover that it is defective after the shop where you bought it has closed.

You do not automatically lose your rights because that particular branch is no longer operating.

Section 56 of the Consumer Protection Act provides an implied warranty of quality for goods supplied to consumers.

If an item fails to meet the required standards within six months of delivery, you may return it to the supplier without penalty and at the supplier’s risk and expense.

The supplier must then repair the goods, replace them or refund the purchase price.

Importantly, the law gives you a choice of remedy. A retailer cannot automatically insist on repairing an item if you are entitled to request a replacement or refund under the Act.

If you accept a repair and the same problem remains, or another defect appears, within three months of the repair, the supplier must replace the goods or refund you.

The protection does have limits. It does not cover damage caused by the consumer, ordinary wear and tear or problems resulting from failure to follow care instructions. Simply changing your mind about a purchase is also not the same as buying a defective product.

Keep your proof of purchase and raise problems as soon as possible. Online shoppers have an additional protection worth knowing about.

Section 44 of the Electronic Communications and Transactions Act provides a seven-day cooling-off period for qualifying electronic transactions.

You can cancel a qualifying transaction without giving a reason within seven days after receiving the goods. The seller must refund you within 30 days.

Unlike the six-month implied warranty under the Consumer Protection Act, this cooling-off right does not require the item to be defective.

However, you may have to pay the cost of returning the goods if they are not defective.

There is also an important distinction between cancelling an online order and returning a faulty product. Different legal provisions may apply, so consumers should establish which protection covers their particular situation.

If a retailer refuses to honour your lay-by rights, voucher or valid defective-goods claim, start by submitting a written complaint directly to the company.

Include your proof of purchase, payment records, relevant dates and a clear explanation of what you want the retailer to do.

If the dispute remains unresolved, you can approach the Consumer Goods and Services Ombud or the National Consumer Commission for assistance.

Keep all correspondence and make sure you understand the terms of your agreement before accepting a proposed settlement.

Ultimately, store closures may change where South Africans shop, but they do not automatically cancel the protections available to consumers.

Whether you are paying off a winter jacket, holding onto a gift voucher or trying to return a faulty purchase, knowing your rights can help you avoid losing money unnecessarily.

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Picture: Iuliia Pilipeichenko / Unsplash

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