The fashion retailer said it will open around 95 new stores and close around 240 stores this year, for a net loss of 145 places – although it declined to say which locations and stores will be affected
Image: Adam Gerrard / Daily Mirror)
H&M will close 240 stores worldwide after sales slowed.
The fashion retailer said it will open around 95 new stores and close around 240 stores this year, for a net reduction of 145 spaces.
Closings will be “primarily in established markets,” with openings in “growth markets,” said the retailer, which has more than 5,000 stores worldwide.
Some 185 stores in Russia have been closed after the country invaded Ukraine, as well as online sales to Russia.
The retailer said Russia is its sixth largest market, accounting for 4% of sales.
Sales rose 6% in local currencies in March, compared to 23% growth in the three months to February, but these were down 11% from two years earlier, before the pandemic hit.
H&M Group confirmed plans last summer to close 250 stores worldwide as part of its recovery strategy from the coronavirus pandemic.
The Swedish chain said the closures were in response to more customers shopping online.
In total, the group, which also includes brands such as Monki and Cos, said 350 stores were affected and 100 would open.
In its financial update at the time, H&M Group reported a 75% increase in net sales from April to June compared to the same period last year.
The company said net sales came in at around £392m while profit rose to £303m in the second quarter.
H&M boss Helena Helmersson said: “With the combination of much-appreciated collections, rapid customization and further improvements, our recovery is strong.
“Despite ongoing restrictions, sales have increased significantly compared to the previous year.
“The third quarter has started well and we are almost back to pre-pandemic levels.
“Together with profitable online growth and continuous store optimization, this will contribute to long-term, profitable and sustainable growth for the H&M Group.”
The store reorganization comes as retail giant Primark launched its first online website, allowing shoppers to automatically check stock levels in stores.
The website uses a traffic light system for this purpose. If an item has the green light, it is in stock. Orange means there are still a few left, while red means it’s sold out but is coming back.
H&M has been asked for comment.
https://www.mirror.co.uk/money/hm-close-240-stores-across-26691905 H&M is closing 240 stores worldwide after a drop in sales