H&M to close stores as online sales rise

H&M has announced that it is planning to close around 250 stores next year, as more of its customers shift to online sales. 

It comes as the group said that “rapid changes” in customer behaviour have been accelerated by the crisis. 

In light of this, the group will now “step up the pace” of its digital transformation, which will see it optimise its store portfolio and increase its online investments. 

In its latest update, the group also said that sales decreased by 5% in September compared to the same period last year.

Currently 166 H&M stores remain closed, which is 3% of the retailer’s total number of stores, with around 25% of stores set to exit or renegotiate by the end of the year.

Helena Helmersson, CEO, said: “As a result of much-appreciated collections together with rapid and decisive actions, our recovery is going better than expected. We have strong, profitable online growth, and more and more stores have been able to open again. 

“With more full-price sales than expected and strict cost control, we returned to profit already in the third quarter. Our teams around the world have done an amazing job. Although the challenges are far from over, our assessment is that the worst is behind us and we are well placed to come out of the crisis stronger.”

She added: “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. 

“We are increasing digital investments, accelerating store consolidation and making the channels further integrated. To ensure that our offerings are relevant to customers and improve availability in all channels, speed and flexibility will be even more important in the future, particularly in the supply chain.”