STOCKHOLM (SWEDEN) – H&M on Thursday announced its plans to shut down hundreds of stores next year as the pandemic has forced more people to shop online. The world’s second biggest fashion retailer reported a smaller than expected dip in third-quarter profit.
Over the decades, the retailer expanded its footprint around the world. But now it has been forced to slash their number of stores by a net 250 next year, representing 5% of its network.
After changing gear and moving to the online platform over the past few years, H&M has been shutting more outlets and opening fewer ones. Earlier this year, the retailer said its net number of stores would dip in 2020.
The firm also said that its sales continued to recover from the impact of the pandemic in September.
CEO Helena Helmersson said: “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.”