H&M to close 530 stores by end of 2021
Fashion retailer H&M will permanently close 180 stores by the end of the year and will close another 350 in 2021, The company has not yet announced the full list of H&M Stores locations which will permanently close, or specifically how many shops will close for each of its brands.
The H&M group includes eight clearly defined brands – H&M, COS, Monki, Weekday, & Other Stories, Cheap Monday, H&M Home and ARKET.
Together brands offer customers a wealth of styles and trends in fashion, beauty, accessories and homewares. Additionally, experiences that now also include modern, healthy food. Brands complement each other well, each having its own unique identity.
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. The substantial investments made in recent years have been very important for our recovery and we are now accelerating our transformation work further to meet customers’ expectations. 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. – Helena Helmersson, CEO
Sales development was significantly negatively affected by the Covid-19 situation. Particularly in the second quarter when stores were temporarily closed in most markets. At the most, approximately 80 percent of the group’s stores were closed.
More closures than previously are expected to result in a net decrease of around 50 stores in the current year, since 180 stores are planned to close permanently rather than the previously communicated 170. And, 130 new stores are planned to open. For 2021 the plan is for 350 stores to close. And, just over 100 new stores to open, resulting in a net decrease of around 250 stores. And, a total of 530 stores will permanently close.
Our hearts go out to the employees affected by these shutdowns. And, to the consumers who rely on these stores.
COVID Retail Apocalypse
This news comes on the heels ofretail giants such as J.C. Penney declared bankruptcy and plans to close 200 stores, And, Victoria’s Secret and Bath & Body Works announced they were closing 300 stores. Gordmans bankruptcy and store closings. Tuesday Morning stores declare bankruptcy. And, of course, Pier One Imports closing all of their stores. Shortly after Neiman Marcus, another department store giant, declared Chapter 11 bankruptcy amid the coronavirus pandemic. And, most recently The Children’s Place announced they would close 300 stores. and 24-Hour fitness closes doors to nearly half of its clubs. See all of the recent store closings in the Covid Retail Apocalypse.
See all the 2020 Stores Closing here.
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