H&M to close 250 stores globally
Fashion conglomerate H&M is to close hundreds of branches worldwide next year after the pandemic sent more shoppers online.
The world’s second largest clothing seller said that around a quarter of its 5,000 shops have leases that are coming up for renewal, which allows it to exit some stores.
The company said it was “too early for us to give any details on this, the numbers will differ from market to market”.
It posted a better-than-expected third quarter results despite profits halving due of the impact of temporary store closures at the peak of the crisis.
The Swedish giant was forced to shut 80pc of its sites - 3pc have not reopened yet.
“Our recovery is going better than expected... With more full-price sales than expected and strict cost control, we returned to profit already in the third quarter,” Helena Helmersson, chief executive of H&M, said.
Its pre-tax profit fell to 2.37bn Swedish krona (£210m) for the nine months to Aug 31, but this was better than analysts had expected.
Sales fell by 16pc to 50.8bn Swedish krona (£4.4bn) for the quarter to August.
The UK retail sector saw online sales peak during lockdown, accounting for a record 33.4pc of all transactions in May.
H&M said it had taken “rapid and decisive action” to mitigate the impact of the virus, by making changes to purchasing, investments, rents, staffing and financing.
The company is boosting its digital investment to meet increased demand through its websites.
Ms 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.
“Demand for good-value, sustainable products is expected to grow in the wake of the pandemic and our customer offering is well positioned for this.
“We are now accelerating our transformation work so that we continue to add value for our customers.”
