The Swedish ready-to-wear company H&M and the American coffee multinational Starbucks have decided to withdraw from the Moroccan market by December 15, 2023. National and international media have linked this measure to what they described as a national boycott campaign against brands known for their investments benefiting Israel, in the context of the ongoing war in the Gaza Strip.
The magazine Maroc Hebdo reported that the two companies would have been impacted by a “commercial boycott on the part of the Moroccans”, following the Israeli offensive on the Gaza Strip. The same source takes up the argument of the economic support of the two brands for the Hebrew State, at war against Palestine.
The Turkish government media TRT also attributed this decision, in an article on its website, to a certain “wave of popular boycotts, in response to the Israeli aggression on the Gaza Strip since October 7.”
The same source adds: “The two international brands faced a strong boycott campaign in Morocco, widely spread on social networks to boycott all products supporting Israel, particularly American products, as a sign of protest against the massacres committed by Israel and its occupying army against civilians in the Gaza Strip.”
An economic motive, far from politics
However, well-informed sources who requested anonymity from Yabiladi indicated that the decision of the two brands is unrelated to the evolution of the situation in the Middle East region. The Kuwaiti Alshaya group, which manages the H&M and Starbucks franchises in the Middle East and North Africa region, has decided to withdraw from Morocco for management reasons and structural economic difficulties.
The same sources confirmed to our editorial staff that the measure had been taken due to “bad management and not because of the boycott”. They mentioned in particular “several operational problems for the Moroccan local administration”, also attributing this withdrawal to “the disastrous economic situation”, in the post-pandemic context. Furthermore, no call for a boycott has been aimed at the Swedish brand H&M, which has struggled to find a place against Turkish competitors in particular, withdrawing from certain shopping centers such as AnfaPlace in 2021.
The Kuwaiti family business has indeed suffered financial difficulties since the health crisis of 2020, during which the catering sector suffered from a period of confinement across the world. A drastic reduction in the capital of the Moroccan subsidiary was also recorded during the board of directors meeting at the end of 2021, going from 142 million dirhams to 65 million dirhams.
The Starbucks franchise’s plans to expand into many markets around the world date back to late 2022, well before the ongoing war in Palestine. Moreover, Bloomberg then confirmed that the Kuwaiti group was considering “partially selling its shares in the Starbucks franchise, which covers the Gulf region to Russia”.
The brand also withdrew from Israel in 2003, “due to the persistent operational challenges the brand faces there.” The multinational argued that it had not provided “any kind of financial support to the Israeli government and/or the Israeli army”, explaining that “Starbucks is a limited company listed on the Israeli market, which implies publicly informing about any donation on an annual basis.
Alshaya showed solidarity with the victims of the Al Haouz earthquake
Despite financial difficulties, Starbucks and the Alshaya group provided financial support of $250,000, following the earthquake of September 8 in Morocco, which left nearly 3,000 dead and at least 5,000 injured. The H&M Foundation also provided support to the Moroccan Red Crescent in response to the natural disaster, including providing food aid, household supplies, access to clean water, healthcare, and medical assistance in emergencies, as well as community protection activities for children who have lost their parents, among others.
