Swedish fashion chain H&M continued its winning streak in SA, growing interim sales 32% in rand terms. This far outpaced the growth of domestic players such as Mr Price Group, Edcon and TFG. H&M’s performance suggests it also did better than foreign competitor Cotton On of Australia, which may close some of its stores in the country. However, with only 11 stores, H&M has one of the smaller footprints among the international competition; Cotton On has 200 stores. The slowdown in consumer spending as well as political uncertainty hurt local retail results. Mr Price Group reported a drop in retail sales of 0.5% in the year to April 1 2017, while comparable store sales fell 3.6%. For the 52 weeks to March, Edcon’s group sales fell 6.7% to R25bn. Most retailers indicated that they would be more cautious in their approach to opening new stores. H&M has said it planned to open another five stores in SA before the end of 2017. The JSE’s general retailers index has declined 15% over the past...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now