H&M Group will close nearly 200 stores around the world

Focusing more on the expansion of the online retail segment. Fast Fashion giant H&M will close nearly 200 stores around the world.

Similar to the loss suffered by Inditex, ZARA’s parent group, the Swedish fast-fashion giant H&M has suffered a loss of approximately $328 million due to the coronavirus outbreak. The large chain apparel brand announced a reorganization plan and will close nearly 200 stores around the world.

Although H&M Group did mention in the statement: “The rate of profit recovery has continued to accelerate due to the reopening recently”, but the company still chooses to close more than 170 stores worldwide to expand online retail sales.

Helena Helmersson, CEO of H&M Group, told analysts in a conference call this week: “We have seen that the epidemic has caused changes in consumer behavior and the customer base for online consumption has increased, many of our customers who were originally physical store shoppers are now multi-channel customers.”

In addition, Helena Helmersson also pointed out that more and more male shoppers have begun to shop online: “What is exciting is that although the market is still full of challenges, our sales have started to recover shortly. There is no doubt that our sales have recovered better than expected so far.”

H&M’s report stated that in the second quarter of 2020, its online sales increased by 32%, allowing them to accelerate the integration of their network channels, and through the supply chain management to enable the company to adjust the stock level rapidly.