Swedish clothing retailer H&M recorded remarkably good sales in South Africa last year, despite the Covid-19 pandemic, the lockdown and restrictions on selling certain clothing items.
In its year-to-November data for the year 1 December 2019 to 30 November 2020 released last week, H&M reported on the damage to its worldwide sales caused by the pandemic and trade restrictions imposed to counter it. Net sales in the year – measured in local currencies – fell by some 18%. During the second quarter of the year, around 80% of the chain’s stores were closed.
Its sales in South Africa (in rand-denominated terms) fell by 6%. This compared very favourably with sales in other countries. Sales in the US fell by 30%, Germany by 12% and India by 17%.
In the last quarter of the company’s financial year – to end November – South Africa reported growth in sales compared to the same period in 2019. It was one of a handful of countries to achieve this.
South Africa’s lockdown regulations prohibited the sale of clothing for several weeks after being initiated in March; this was amended in May to allow the sale of certain items, such as baby wear. Clothing was only able to be sold without restrictions in June.
H&M opened in South Africa in 2015 and has 27 stores in the country. A controversial advertising campaign in 2018 which featured a black child wearing a shirt with the phrase ‘Coolest Monkey in the Jungle’ prompted protests – sometimes violent – against the chain.
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