H&M to close 250 stores next year, after the increase of online shopping

H&M plans to close hundreds of stores next year after the coronavirus pandemic led to an increase online shopping, DPA and Reuters reported.

H&M had 5.043 stores on August 31, in 74 markets, including franchises, worldwide.

The Swedish company announced that it will reduce the number of stores by 250 in 2021, representing 5% of its current network. H&M also reported that sales continued to recover in September following the impact of the pandemic.

On the Stockholm Stock Exchange, H&M shares were up 6% on Thursday.

H&M financial results in Q2 2020

Between June and August 2020, pre-tax profit fell to SEK 2.37 billion ($ 265.6 million) from SEK 5.01 billion a year ago.

H&M local currency sales also fell by 5% in September, after declining by 19% between June and August 2020.

Net profit halved in June-August 2020 to SEK 1.8 billion ($ 201 million) from SEK 3.8 billion a year ago. Quarterly sales fell to SEK 50.8 billion, while online local currency sales rose by more than a quarter.

Sales fell in all major H&M markets, from 34% in the US to 16% in China and 10% in Germany.

The Swedish group has seven brands: H&M, COS & Other Stories, Monki, Weekday, Arket and H&M Home.

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