The Foschini Group (TFG) CEO Anthony Thunström has issued a stark warning that South Africa’s rapidly escalating online gambling addiction is becoming a more significant threat to the economy—and to his own business—than competition from international fashion giant Shein. Speaking on the sidelines of the group’s half-year results presentation, Thunström described gambling as a “national crisis” that is systematically draining household incomes and undermining the retail sector’s recovery.
“We are competing with betting apps for our customers’ disposable income,” Thunström said. “And right now, the betting apps are winning.” His comments come as TFG reported revenue growth of 12.2% to R31.4 billion, but a sharp decline in profits to R944 million, driven by weak consumer demand and higher operating costs. Thunström attributed much of the profit squeeze to the diversion of spending away from retail and towards online betting platforms, which have proliferated in recent years.
While TFG has successfully navigated competition from Shein and other fast-fashion disruptors by investing in its own digital platforms, supply chain efficiencies, and local production, Thunström argued that the erosion of consumer spending power due to gambling addiction is a more insidious challenge. “Shein is a competitor we can see and respond to. Gambling is an addiction that empties wallets, breaks families, and leaves communities poorer. It is a societal problem that requires urgent government attention.”
Thunström called for stronger regulation of online gambling, including tighter advertising controls, mandatory affordability checks, and the allocation of tax revenue from gambling to addiction treatment and education programmes. He noted that while TFG remains committed to its long-term growth strategy, the broader economic environment—including the strain of gambling on household budgets—poses a growing risk to the retail sector’s recovery.
As the debate over gambling regulation intensifies, Thunström’s intervention adds a powerful business voice to calls for action, framing the issue not just as a social concern but as an economic imperative. For TFG and the retail industry, the battle for the consumer rand is no longer just about price and product—it is about whether that rand will reach the till at all.
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