Swedish fast fashion retailer H&M has reported strong growth in e-commerce sales, in keeping with the current rise in online shopping due to the onset of the pandemic.
The rapidly shifting consumer preferences have led the brand to announce the closure of 250 stores out if its 5,000 locations across the world by next year.
The revelation of the growing online sales coupled with the fact that the company has returned to profit in the third quarter despite fashion retail struggling to make ends meet throughout the world, has helped H&M’s shares soar as much as 7.7 per cent recently.
In an effort to tap the vein of consumers, the retailer has decided to consolidate stores and ramp up its digital offerings.
As of 31 August, when the third quarter ended, H&M still had about 200 stores temporarily shut.
However, net profit for the period stood at 1.8 billion SEK or US $ 201 million, which is definitely lower than the 3.9 billion SEK in profits for the same period last year but shows an upward trend in times like these especially when the second quarter garnered losses of 5 billion SEK.
H&M’s chief executive, Helena Helmersson remarked that the company is more prepared and resilient for the onset of a second wave and their rapid and decisive actions have led them out of the current crisis.
“More and more customers started shopping online during the pandemic, and they are making it clear that they value a convenient and inspiring experience in which stores and online interact and strengthen each other,” she added while reiterating that H&M is working to improve its supply chain to increase availability of inventory and the speed of deliveries.