Are Starbucks and H&M closing in Morocco?
By: Joud Sleilaty / Arab America Contributing Writer
Introduction:
Recently, Maroc Hebdo, a French-language Moroccan weekly political magazine, reported that both Starbucks, the American coffee giant, and H&M, the renowned Swedish clothing brand, are prepared to permanently close their doors in Morocco on December 15 of 2023.
Closures Assumed to be the Consequence of Boycotts
The main reason behind these said closures comes from a significant decline in demand within the country. Alshaya Morocco, the Moroccan subsidiary of the Kuwaiti franchise giant responsible for managing H&M and Starbucks franchises in the Middle East and North Africa, has been severely impacted by the sudden change in demand. This decrease is primarily a consequence of the ongoing pro-Palestine boycott movement, urging consumers to refrain from supporting brands and companies with affiliations to Israel.
The Boycott, Divestment, and Sanctions (BDS) movement, inspired by historical movements, like the Black Civil Rights Movement and activities in South Africa, targets brands with ties to Tel Aviv. Notably, it extends beyond Starbucks and H&M to include multinational retailer Carrefour, Domino’s, McDonald’s and Burger King, alleging support for Israel’s actions in Gaza. The BDS movement emphasizes a strategic and peaceful approach for meaningful contributions to Palestinian liberation, cautioning against broad lists lacking credible evidence.
Are They Closing Because of the Boycotts?
One might think that the boycotts were so successful that they are the reason behind the closures taking effect as early as December 15. However, Yabiladi, an English-language online newspaper covering news on Morocco, has stated that the closures are attributed to “management reasons and structural economic difficulties” over the years. Anonymous sources mentioned in the report claim that the decision is unrelated to the situation in the Middle East region, citing “operational problems for the Moroccan local administration” and the “disastrous economic situation.”
In a broader context, popular fast-food chains like McDonald’s and KFC have also seen a decline in customers, reflecting anger over Israel’s actions. However, they currently remain operational.
Are the Companies Closing their Doors in the Moroccan Market?
Despite having dozens of locations in Morocco, Starbucks and H&M remain silent on the closures. The sudden news has shocked consumers and workers alike, with affected store employees expressing concern for their jobs. The closures are expected to take place in less than 10 days and no official statements have yet to be made by any of the two companies.
According to information from the North Africa Post, Kuwait’s Al Shaya group, which operates H&M and Starbucks in the MENA region and Europe, has denied reports of phasing out its business in Morocco. North Africa Post specified that Al Shaya clarified in a statement relayed by Moroccan media that both H&M and Starbucks will continue their operations in the North African Kingdom. The group emphasized that it regularly assesses its portfolio to ensure the proper functioning of its stores in locations most convenient for its clients. The statement did not provide specific details on the assessments.
Conclusion
The reported closures of Starbucks and H&M in Morocco, set for December 15, have created uncertainty. Initial links to boycott movements have been challenged by reports citing management and economic difficulties as the reasons. Despite the anticipated closure date, neither Starbucks nor H&M has officially addressed the situation, leaving consumers and employees in suspense. Kuwait’s Al Shaya group, responsible for managing these franchises, has explicitly denied withdrawal plans, emphasizing their commitment to ongoing portfolio assessments. Until official statements emerge, the fate of these iconic brands in the Moroccan market remains uncertain.
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