H&M Closing 250 Shops Subsequent Yr – CBS dangolka


(CNN) — H&M is closing 250 shops subsequent yr due to the coronavirus pandemic, as individuals more and more store on-line.
The fast-fashion retailer has 5,000 shops worldwide, so Thursday’s announcement accounts for five% of its complete retailer rely.
It’s not identified but which shops can be closed. H&M has 10 places in Massachusetts.
“An increasing number of clients began purchasing on-line throughout the pandemic,” following momentary retailer closures that, at its peak, totaled about 80% of its retailer rely, H&M mentioned in an announcement Thursday.
The Swedish retailer mentioned its third quarter, which encompasses gross sales from June to August, recovered as time went on due to retailer reopenings and “robust and worthwhile” development in on-line purchasing. Nonetheless, September gross sales declined 5% in comparison with the identical month a yr in the past.
“Though the challenges are removed from over, we imagine that the worst is behind us and we’re effectively positioned to return out of the disaster stronger,” CEO Helena Helmersson mentioned in launch.
The coronavirus has accelerated the pattern towards on-line purchasing, which was already disrupting the retail business and battering main chains earlier than the pandemic hit. H&M rival Inditex, which owns Zara and different fast-fashion manufacturers, mentioned earlier this yr it plans to shut as many as 1,200 shops this yr and subsequent.
H&M and Inditex aren’t the one retailers feeling the pinch. American Eagle Clothing store and GameStop additionally just lately introduced plans to shut a whole bunch of shops due to the rise of on-line purchasing.
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