Clicks shares shrug off furore over hair advert

Clicks shares closed 0.04 percent lower on the JSE after chief executive Vikesh Ramsunder penned an open letter apologising for the marketing campaign depicting a racial stereotype in the aftermath of a public outcry over the advert. Photo: Timothy Bernard /African News Agency (ANA)

Clicks shares closed 0.04 percent lower on the JSE after chief executive Vikesh Ramsunder penned an open letter apologising for the marketing campaign depicting a racial stereotype in the aftermath of a public outcry over the advert. Photo: Timothy Bernard /African News Agency (ANA)

Published Sep 8, 2020

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JOHANNESBURG – Clicks shrugged off the furore surrounding the healthcare retailer, with the stock remaining largely unchanged despite the forced closure of some of its operations in parts of the country and a failed bid to interdict protesters calling for the boycott of its products yesterday.

Clicks shares closed 0.04 percent lower on the JSE after chief executive Vikesh Ramsunder penned an open letter apologising for the marketing campaign depicting a racial stereotype in the aftermath of a public outcry over the advert.

Ramsunder said he was deeply disappointed that the group had allowed insensitive and offensive images to be published on its website.

“I apologise unreservedly for the hurt and anger these images have caused,” said Ramsunder.

Clicks published a TRESemmé South Africa advert on its website in which images of black hair were labelled as dry and damaged. Ramsunder said the negligent employees had been suspended, and the group had engaged with the supplier, which had also issued an apology.

“This incident has highlighted the need to audit all of our third party and our own promotional material for any implicit or explicit bias, as well as the need for diversity and inclusivity training for all of our head office employees,” he said. “This will be urgently implemented.”

TRESemmé South Africa also apologised for the offence these images had caused, it also apologised to the Clicks group.

Independent retail analyst Syd Vianello said that shareholders were unlikely to withdraw their investments, as they were generally interested in profits. Vianello said the outrage was unlikely to cause any material longterm damage to Clicks.

“More importantly, Clicks have apparently apologised, which means they have done the right thing,” said Vianello, adding that companies such as Aunt Jemima and Uncle Ben’s in the US were being repackaged to remove the racial undertones inherent in their marketing for decades.

“If you don’t correct these things now, it could impact your business down the line. Apologies are needed, but they are not enough. The problem needs to be corrected. Perhaps Clicks needs to state categorically they will vet all future advertising to ensure something with even a hint of racial connotations will not be permitted in their stores.”

Mergence Investment Managers analyst Lulama Qongqo said the performance of the company would be determined by disruptions at its stores and law enforcement interventions.

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