Swedish fashion group H&M plans to close 170 stores this year, following the coronavirus crisis and the losses incurred as a result. The focus will be more on e-commerce.
Digitisation accelerates
The previous quarter ended in the red for H&M Group: turnover fell by no less than 50%. CEO Helena Helmersson responded swiftly and immediately announced that more stores would close this year than initially anticipated – and that fewer new stores will open. She also warned that these steps will result in inevitable dismissals.
Now the scale of the plans becomes clear: H&M Group, which also includes brands such as COS, Weekday and Monki, will close 170 stores around the world this year. However, Helmersson has not yet announced which brands and locations will be affected.
H&M wants to focus more on e-commerce after the strong growth in this channel during the lockdowns. The pandemic has caused changes in buying behaviour, which will accelerate the digitisation of the fashion sector, according to the CEO: even customers who have always bought in physical stores are now buying online and more men have made the move to e-commerce.
