H&M to close 350 stores

H&M to close 350 stores

H&M group has unveiled plans to downsize its store network by 250 units this year. The fashion chain has announced this alongside its half-year results, citing "an ongoing transformation of the industry, and increased digitalisation that has rapidly changed customers’ behaviour". The group expects to close 350 stores, while opening 100 new stores, resulting in a net decrease of around 250 stores. Most of the openings will be in growth markets while closures will mainly be in established markets. The first H&M store in Panama is scheduled to open in the second half of 2021 via franchise. In March H&M opened online in Qatar via franchise and in the quarter H&M has also been successfully launched on the e-commerce platform Zalora in Indonesia, the Philippines, Malaysia and Singapore. In April Weekday was launched on the e-commerce platform AboutYou in 23 markets in Europe. Sellpy, the second-hand platform part-owned by H&M group, was launched in an additional 20 markets and is now available in a total of 24 markets in Europe. COS plans to launch online in Australia at the start of 2022. Cambodia will become a new H&M market via franchise in 2022.

 

Helena Helmersson, CEO of H&M group, commented: “As more and more people are vaccinated and restrictions are eased, the world is gradually opening up and customers can once again visit our stores. With the combination of much-appreciated collections, rapid adaptation and further improvements, our recovery is strong. Despite continued restrictions, sales increased significantly compared with the previous year. The third quarter has started well and we are almost back at the level we were at before the pandemic. I am proud of all our colleagues’ commitment and drive during this challenging period. The crisis has made us even stronger as a company. The lessons we have learned are enabling us to be even better and faster at making the most of new opportunities, and we are optimistic about the future. Both existing and new customers are showing every day that they appreciate our customer offering with the best combination of fashion, price, quality and sustainability. Our long-term digital investments and increasingly integrated sales channels, along with more efficient ways of working and our customer focus, have been important during the pandemic. By being flexible and adapting quickly, all parts of the company have contributed to the recovery. At the same time, we can never sit back and relax. We are driven by a passion to continually improve the customer offering and the customer experience. Our transformation, therefore, continues at full speed in order to meet customers’ increased expectations and strengthen our competitiveness further. Here I would like to highlight our initiatives within tech, AI and the supply chain, where we have made great progress while still seeing further opportunities within areas such as greater precision and local relevance. In the wake of the pandemic, we are seeing increasing demand globally for fashion that provides value for money and is sustainable, which we are well-positioned for. Our brands are also offering an increasing number of services for a more sustainable lifestyle. In combination with our work to become circular and climate positive, we are also increasing the share of sustainable and renewable materials. We are developing the existing business and are also creating new complementary revenue streams. Together with profitable online growth and continued store optimisation, this will contribute to long-term, profitable and sustainable growth for the H&M group.”

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