International retailer competing against TFG, Truworths, Mr Price, and Shoprite’s Uniq with 30 stores in South Africa

International fashion retailer H&M has opened its 30th store in South Africa, expanding its presence while local clothing retailers face weaker sales and growing competition.

Since opening its first South African store in 2015, H&M has steadily expanded its local footprint. The brand is now a feature in many of the country’s biggest shopping malls.

On Saturday, 31 October 2026, H&M opened its 30th South African store at Paarl Mall in the Western Cape.

The new 1,831m² store offers clothing and accessories across womenswear, menswear and kidswear, alongside a fragrance range.

The opening created 22 direct jobs and extends H&M’s reach across Paarl and the wider Cape Winelands.

H&M South Africa general manager Ricardo Valente da Conceicao explained that the opening marked an important milestone for the retailer.

“Opening our 30th store in South Africa is a proud milestone for H&M and reflects our continued commitment to investing in the country,” he said.

H&M’s arrival forms part of a broader redevelopment of Paarl Mall, a regional shopping destination serving customers from Paarl, Wellington, Franschhoek, Worcester, and surrounding areas.

Undertaken by Growthpoint Properties, the R270 million project began in January 2026 and is expanding the mall’s gross lettable area to 44,474 m².

It includes internal reconfigurations, a new main entrance, upgraded facilities and changes to the centre’s retail mix.

The redevelopment is intended to make more space available for retailers and improve the shopping experience.

New additions include contemporary furniture retailer Cielo and a Wordsworth store. Existing tenants such as Truworths, Foschini, @home, Sportscene and Identity have also taken the opportunity to expand or introduce updated store concepts.

The mall is also increasing its restaurant and fast-food offering, with a revamped family food court planned.

Growthpoint said the redevelopment responds to demand from shoppers for a wider fashion offering, more food choices and improved facilities.

Since opening in 2005, the shopping centre has established itself as a major retail destination in the region.

Growthpoint said the centre has consistently maintained vacancies below 1% and delivers above-average trading densities within its retail portfolio.

The mall’s catchment area is also growing, with more than 4,300 new housing units planned or under construction.

Local retailers face pressure

H&M’s expansion comes as major South African clothing retailers face pressure from weaker consumer spending, rising costs and increased competition.

For example, Truworths reported a slight decline in revenue to R12.93 billion for the first half of its 2026 financial year.

Its profit increased by only 0.3% to R1.83 billion, while merchandise sales rose by 0.4%. Its largest division, Truworths Africa, recorded a 3.6% decline in retail sales to R8 billion.

Online shopping provided some relief, with Truworths Africa’s online sales increasing by 23.3%. These sales accounted for 7.4% of the division’s retail sales.

The Foschini Group (TFG) has faced more significant pressure on profitability. Its annual profit declined from R2.91 billion in the 2022 financial year to R1.32 billion in 2026.

The retailer, which owns brands including Foschini, Jet, Markham and Bash, is also restructuring its store network to reduce costs and eliminate loss-making locations.

TFG operated 4,923 stores across 23 countries in the 2025 financial year, following years of expansion and acquisitions. This made it one of South Africa’s largest retail groups by store footprint.

Its store rationalisation programme began in the 2026 financial year, when it closed 242 stores. It also opened 233 new locations, ending the year with 4,914 stores.

The programme continued into the 2027 financial year, with another 85 stores closing in the first six months.

Chief executive Anthony Thunstrom said the group plans to close up to 280 additional stores by the 2029 financial year.

The closures will target loss-making and marginal locations across its brands in South Africa and the rest of Africa.

Competition is making it harder for local brands to stay afloat. Not only are they up against international giants, like H&M, but they also need to compete against cheap online retailers like Shein and Temu.

Competition is also increasing from grocery retailers. Shoprite and Pick n Pay are expanding and revamping stores as they seek to gain a larger share of the apparel market.

The pressure is reflected in the share prices of listed clothing retailers. An analysis conducted by Daily Investor in October 2026 showed that Mr Price was down 1.13% year to date, while TFG had fallen 41.29%, Pepkor 31.63% and Truworths 18.84%.

PSG Financial Services wealth manager Schalk Louw attributed the declines to weaker consumer spending and pressure on retailers’ profit margins.

He said households remain under pressure from higher fuel prices and interest rates, while discounting and competition make it difficult for retailers to protect margins.