Clothing retailer H&M has just launched an online outlet as they look to reach more South Africans.
The Swedish clothing retailer’s local unit is to launch an online offering on the e-commerce platform, Superbalist, in a move welcomed by analysts as a smart way of expanding without hefty capital outlays.
The retailer’s clients will be able to buy fashion items for women, men, teenagers, and children from Wednesday 22 February, with interior and décor products from H&M Home also available on the Superbalist platform.
In a statement to the media, the country manager for South Africa Caroline Nelson said the partnership with Naspers-owned Superbalist reinforces the group’s “commitment to sustainable growth in South Africa and will complement our current 28 stores across the country”.
On behalf of Superbalist, co-CEO David Cohen said the group was excited to welcome H&M to the Superbalist family and bring their accessible, trendy yet affordable fashion to millions of online shoppers.
According to News24, Sasfin Wealth senior equity analyst Alec Abraham said the move means H&M did not want to miss out on any potential opportunities in SA, but at the same time did not want to lay down more capital to open more stores.
This is a very capital-light way to increase your exposure to a broader market in South Africa outside the locations of where they are without necessarily having to put significant money down. I think it is a very prudent move,” he said.
“We have seen a lot more activity online. It is a great way to increase your exposure to South Africa beyond the catchment area of the stores you have in a capital-light way.”
Abraham said that more and more South African retailers were developing online retail platforms, adding that online retail still accounted for a relatively small segment of the market, compared to the United States and the United Kingdom where online retail sales of mid to high-teens were being reported.
The clothing retailer initially opened its doors in South Africa back in 2015 and its latest Tygervalley Shopping Centre store in Cape Town is set to open on Thursday, 27 April.
