MARKET SHARE GROWTH
H&M sales rise in SA bad news for local retailers
The retailer's sales increased 39% in rand terms from the nine stores it has in operation
Swedish retailer H&M has continued on its winning streak in SA, dodging the malaise to which domestic retail players have succumbed. In the first quarter of its 2017 financial year, H&M’s sales increased 39% in rand terms to about R356m from the nine stores it has in operation. H&M SA opened its 10th store in Nelspruit last week. Its 11th store will be opened in Polokwane at the Mall of the North on April 8. Europe’s second-largest retailer is one of many global players who have moved to SA in a bid to increase market share and search for untapped markets in the hopes of bolstering performance. Mergence equity analyst Peter Takaendesa said H&M was growing faster than bigger local retailers due to a combination of strong investment into new stores, effective marketing and "possibly better positioned product offering". H&M’s results have come at the expense of Woolworths, Truworths and Mr Price who released less than stellar trading updates and results earlier in 2017. "We estimate th...
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