H&M continues to feel the heat of the pandemic!
The Swedish fashion retailer has announced the permanent closure of 170 stores around the world and what’s noteworthy is that it will be across all its 7 brands including Monki and Cos.
In its Q2 report to investors, the fashion retailer had stated to increase its earlier closure of stores by 40 to touch 170 now – understandably so following the rapid surge of coronavirus in some European countries again.
Meanwhile H&M also has plans to open 130 stores in different parts of the globe, which distinctly highlights the importance bricks-and-mortar stores still hold for them despite the retailer’s focus on digital business.
Corroborating further on the same, a spokesperson of H&M said that physical stores continue to be important for the Group, but it is all about having stores in the right locations – justification to the announcement of store closures.
The spokesperson, however, did not confirm how many of the aforementioned store closures would include stores in the UK.
Notably, H&M stores that reopened last month saw a decent footfall and improved sales.
This is the ‘new normal’ world where the consumer behaviour is changing every day and H&M has made it clear that portfolio optimisation of stores and digital business development are the key to its survival and success.
H&M, which is the second largest apparel retailer in the world, has digital presence in around 33 countries and generates revenue of US $ 25.191 billion.
