What happens to a lay-by when a store closes is set out in the Consumer Protection Act: every instalment you paid stays your property until you receive the goods. Gift vouchers keep their value for three years from issue, and an online order the shop cannot fill must be refunded within 30 days of it telling you. Those rules matter now because TFG is closing dozens more stores.
Why TFG shoppers are asking
TFG, which owns Foschini, Markham, Sportscene, Totalsports, Exact, @home and American Swiss, said in a trading update on 2 September 2026 that it had closed 85 stores in Africa in the 21 weeks to 22 August because they were no longer economically viable. It opened 25 new stores in the same period.
TFG said about 80 more stores were likely to fall within its closure parameters in the year to 31 March 2027, and about 100 in each of the following two financial years. Read as quoted, that is up to 280 more closures. Some reports put the figure at 180, counting 100 across both later years rather than in each. The trading update did not name the stores. Our report on TFG’s store closures covers the original announcement.
Your lay-by money stays yours
Section 62 of the Consumer Protection Act covers any deal where a shop holds goods while you pay them off in instalments.
- Each amount you pay remains your property until the goods are delivered to you.
- The goods stay at the shop’s risk until delivery, so loss or damage in the meantime is the shop’s problem.
- If you have paid in full and the shop cannot deliver, you choose the remedy: comparable or better goods in the same quantity, or your money back.
- The refund comes with interest at the prescribed rate if the failure was beyond the shop’s control, or double what you paid in any other case.
The Act limits what counts as “beyond the shop’s control”. A shortage caused by the shop’s failure to handle ordinary business matters properly does not qualify.
If your branch is closing, ask in writing where your lay-by will be held and where you can collect, and keep every receipt.
Cancelling a lay-by
You may cancel a lay-by before you finish paying. The shop may then charge a cancellation penalty, but only if it told you about the penalty before you signed, and the regulations cap it at 1% of the full price. No penalty is allowed if you could not finish paying because of death or hospitalisation. The rest of what you paid must be refunded.
The same applies if you fail to complete payment within 60 business days after the agreed completion date.
Gift cards, vouchers and prepaid credit
Section 63 says a prepaid certificate, card, credit or voucher does not expire until the earlier of two dates: when its full value is used, or three years after it was issued. A shop may agree to a longer period, but not a shorter one. Until you spend it, the money behind the voucher belongs to whoever holds it. A branch closing does not change those rules.
Faulty goods bought at a closed branch
The six-month implied warranty on defective goods sits with the supplier, the company that sold you the item, not with one shop. Keep your slip and take the item to another branch of the same brand. Our guide to Consumer Protection Act returns explains the six-month rule.
Online orders
TFG has said online sales are growing faster than store sales, so more customers will order from it online. Section 46 of the Electronic Communications and Transactions Act sets the rules for online orders:
| Situation | What the law requires |
|---|---|
| Normal order | Delivered within 30 days of the order, unless you agreed otherwise |
| Order not delivered in time | You may cancel with seven days’ written notice |
| Goods unavailable | The shop must tell you immediately and refund you within 30 days of telling you |
Store accounts
Closing a branch does not cancel a store card or account. The credit agreement is with the company, so instalments stay due. Check your statement for how to pay if your usual branch has shut, and keep paying to avoid arrears.
If a retailer goes under
Section 65 says a business holding a customer’s prepayments or deposits must not treat that money as its own. If a business goes into liquidation, the liquidator must investigate whether it holds customers’ money or property and deal with it for their benefit. This applies to any failing retailer, not only to branch closures.
How to complain
- Complain to the company in writing and keep the reference number.
- Give it 15 business days to resolve the matter.
- If it does not, lodge a complaint with the Consumer Goods and Services Ombud, which is free. Call 0860 000 272 or use cgso.org.za.
- If the ombud cannot resolve it, you can take the complaint to the National Consumer Commission.
Other retailers are closing stores too, including Pick n Pay’s store closures, and the same rules apply to their customers.
Where to check
- Consumer Protection Act, section 62: lay-bys
- Consumer Protection Act, section 63: prepaid certificates, credits and vouchers
- Electronic Communications and Transactions Act, section 46: performance
- Consumer Goods and Services Ombud
HOW WE REPORTED THIS
- Lay-by, voucher and consumer-property rules were taken from the text of sections 62, 63 and 65 of the Consumer Protection Act, and the 1% cancellation cap from regulation 34 of the Act's regulations.
- Online order rules were taken from section 46 of the Electronic Communications and Transactions Act.
- TFG's closure figures come from reports of its 2 September 2026 trading update, including one that quotes the update directly; reports differ on the total and the article sets out the difference.
- The Consumer Goods and Services Ombud's 15-business-day rule and contact details were taken from interviews with and reports on the ombud.
- No comment was sought from TFG.
