BRUCE WHITFIELD: The EFF’s misplaced Clicks rage
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The irony of the Economic Freedom Fighter’s (EFF) blockade and arson attacks on Clicks stores over racism allegations is that the group is the only major JSE-listed retailer to have not divested from SA in recent years.
Instead of packing for Perth, Pennsylvania or Plymouth like most of its peer group, Clicks has instead focused all its growth efforts on the domestic environment. While most of its peers have taken capital offshore in the name of diversification from SA’s political and social risk, Clicks has quietly built its health and beauty business domestically, creating jobs and paying its taxes.
The firm has come under fire over an advert for hair products carried on its website which denigrated the hair of black people.
Clicks apologised, saying: “We have removed the images which go against everything we believe in. We do not condone racism and we are strong advocates of natural hair. We are deeply sorry and will put in place stricter measures on our website.”
Still, the EFF was having nothing of it. It prevented staff at several stores from getting to work and disrupted other commercial activities with a series of orchestrated mall invasions after an instruction from leader Julius Malema on social media: “Clicks, see you tomorrow. Fellow fighters and ground forces; ATTACK”
The party used its social media accounts to promote its blockade, and showed Malema chaining the doors of a Polokwane store shut. The sporadic incidents of vandalism and arson were predictable. At the time of writing, there were reports of an EFF presence at nearly 40 of the groups more than 800 stores countrywide.
Clicks stands out among its peers for several reasons. At the 2019 Sunday Times Top 100 awards last November, the top three performing companies in terms of share price performance over five years were all firms with an exclusive focus on SA: Capitec, Clicks and Transaction Capital.
In sharp contrast to other retail groups which, under pressure from shareholders and boards, splurged billions on international ventures ostensibly to de-risk their returns, Clicks stayed focused on serving the local market.
The fact is, few South African companies outside of the resources stocks have flourished internationally.
Naspers, SABMiller and Bidcorp are notable exceptions, but many others ventured into new environments at considerable cost of shareholders, only to return home (like Old Mutual and Standard Bank) to focus more on their core domestic competence.
In ...
Instead of packing for Perth, Pennsylvania or Plymouth like most of its peer group, Clicks has instead focused all its growth efforts on the domestic environment. While most of its peers have taken capital offshore in the name of diversification from SA’s political and social risk, Clicks has quietly built its health and beauty business domestically, creating jobs and paying its taxes.
The firm has come under fire over an advert for hair products carried on its website which denigrated the hair of black people.
Clicks apologised, saying: “We have removed the images which go against everything we believe in. We do not condone racism and we are strong advocates of natural hair. We are deeply sorry and will put in place stricter measures on our website.”
Still, the EFF was having nothing of it. It prevented staff at several stores from getting to work and disrupted other commercial activities with a series of orchestrated mall invasions after an instruction from leader Julius Malema on social media: “Clicks, see you tomorrow. Fellow fighters and ground forces; ATTACK”
The party used its social media accounts to promote its blockade, and showed Malema chaining the doors of a Polokwane store shut. The sporadic incidents of vandalism and arson were predictable. At the time of writing, there were reports of an EFF presence at nearly 40 of the groups more than 800 stores countrywide.
Clicks stands out among its peers for several reasons. At the 2019 Sunday Times Top 100 awards last November, the top three performing companies in terms of share price performance over five years were all firms with an exclusive focus on SA: Capitec, Clicks and Transaction Capital.
In sharp contrast to other retail groups which, under pressure from shareholders and boards, splurged billions on international ventures ostensibly to de-risk their returns, Clicks stayed focused on serving the local market.
The fact is, few South African companies outside of the resources stocks have flourished internationally.
Naspers, SABMiller and Bidcorp are notable exceptions, but many others ventured into new environments at considerable cost of shareholders, only to return home (like Old Mutual and Standard Bank) to focus more on their core domestic competence.
In ...