H&M, one of the world’s leading fashion retailers, is planning to close 250 of its stores worldwide starting next year.
The company’s decision for the closure is due to the accelerating trend for online shopping following the COVID-19 pandemic.
The fast-fashion brand has 5000 stores worldwide, meaning the closure will account for 5% of its total store count. Back in June, the retail group previously closed 170 stores around the globe in order to focus on online stores.
A spokesperson for H&M acknowledged the key trend caused by the virus, stating “more and more customers started shopping online during the pandemic.” Even though net sales have recovered in September, the figure is 5% lower than the same month last year.
“Although the challenges are far from over, we believe that the worst is behind us and we are well placed to come out of the crisis stronger,” said Helena Helmersson, H&M’s CEO. The company hasn’t mention the location of outlets that’ll be affected but “the numbers will differ from (national) market to market.”
It is still unsure how many H&M stores will be closing in Malaysia, or whether its sister brands like COS or Monki would be affected.
Source: BBC
