Cape Town - Swedish retailer H&M has revealed plans to open six more
The clothing sector particularly is under severe pressure, as clothing is classified as “discretionary spend” from a consumer’s budgetary perspective, meaning that when people are short for cash, they cut back in these areas.
Furthermore, the entry of international players such as H&M, Zara, and Cotton-on, has put even more pressure on local players like Mr Price, Truworths, Foschini, as well as Edcon, and even a casualty,” Stefan Salzer, Partner and Managing Director at Boston Consulting Group South Africa said in a statement.
Salzer also said the entry of international players such as H&M, Zara, and Cotton On had put more pressure on local players Mr Price, Truworths, Foschini and Edcon.
H&M South Africa country manager Pär Darj, said they see
a lot of potential in SA “Three stores will be opened in
He said that the Canal Walk store in
“We are extremely excited to be opening yet another flagship in the western part of the country,” said Darj.
H&M’s expansion comes at a time when local and international fashion brands are finding it harder to survive as consumers are experiencing increased pressure.
International fashion brands Mango and Nine West, which were
brought to SA by House of Busby, closed their stand-alone stores in March.
Analysts have warned it is going to become even tougher for clothing retailers. Since the beginning of 2017, retailers of textiles, clothing, footwear and leather goods have experienced sharp declines. The Statistics SA retail trade sales report for April showed this segment of goods recorded a 4.7% drop after a 5.1% decrease in March.
BUSINESS REPORT ONLINE