RABAT – The famous brands’ closure is due to poor performance, which doesn’t match Moroccan market expectations.
The low sales came after a recent boycott campaign that targeted Israeli-supported brands in protest of the Israeli attack on Gaza.
Famous international brands like Starbucks and H&M will be forced to shut down and exit Morocco by December 15th, 2023. This decision was announced due to the lack of profitability and poor performance of the brands and was made by the Al Shaya Group, which operates these franchises.
As per the group, the brands are not meeting expectations and positioning despite adopting local demand and preferences.
The closure of these famous brands, Starbucks and H&M, resulted from a campaign in Morocco. The campaign aims to boycott all Israeli-related brands in protest of Israeli attacks on Gaza.
The boycott campaign was launched on social media and urged customers from all over the world to stop buying from brands supporting Israel. The campaign adversely affected the sales and reputation of not only these brands but others like McDonald’s, etc.
The exit of Starbucks and H&M from Morocco reflects the challenges Israeli-supported brands face in different regions. The brand has to deal with economic and social factors that influence consumer behavior and highly determine the success and failure of the brand.
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