Foreign brands feel the pinch in tough times
International retailers turn cautious over plans for expansion
Last year, Australia-based retailer Cotton On opened its largest flagship store in the world at Mall of Africa in Johannesburg. At 2,623m² the store was meant to be the epitome of the group's fast global expansion. But the most developed economy in Africa has not lived up to its promise and the group may close some stores. While the group refused to respond to questions on store closures, Johan van Wyk, the country manager of Cotton On Group South Africa, said: "As a global business, we continually review our portfolio of over 1,500 stores in 19 countries to ensure we're operating efficiently and opening doors in the best locations for our growing customer base." But Thabo Ramushu, executive director at Meago Asset Management, said: "When Cotton On came into the market they had ambitious plans and the number of stores they wanted to open, but they are going to pull back a little. "It's a tough environment at the moment, consumers are under strain. "Half the time we think our prime s...
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