H&M closing 250 stores worldwide in 2021

H&M is closing 250 of its 5,000 branches across the globe next year, as more and more shoppers move to the digital scene, H&M confirmed through a business report on its site.

The Swedish fashion brand’s sales have continued to recover from the impact of the COVID-19 pandemic due to “strong and profitable online growth” and store re-openings.

“With more full-price sales than expected and strict cost control, we returned to profit already in the third quarter,” CEO Helena Helmersson said in the company statement. “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.”

Their September sales, however, still fell by 5% percent compared to the same month last year.

As some H&M shops continue to operate with limited capacity and store hours, around 166 (3 %) of its global stores are yet to reopen.

The H&M group looks to make sure to adapt to customer behavior amid COVID-19, “stepping up the pace of its transformation work further, with digital investments, optimization of the store portfolio and increasingly integrated channels.”

Banner image by Ibrahim Boran via Pexels.com